Tesla and Apple have both led the Nasdaq 100 to touch all-time highs, but a volatility indicator is suggesting that investors could face some wild swings. The CBOE Nasdaq volatility index has increased over 10% in the last five days. A higher CBOE volatility figure reflects increased investor nervousness.
The CBOE Nasdaq volatility index, which tracks the volatility of options on the Nasdaq 100 index, has surged by around 50% in the last three weeks, having bumped along in a steady range since mid-May. The index was last up 10% around 40.44, marking a near-two month high as of 11:40 a.m. ET.
Just like Wall Street’s favorite “fear index”, the VIX, or CBOE Volatility Index, which tracks options volatility for the S&P 500, the higher the value, the greater the investor nervousness.
What is unusual is the Nasdaq volatility index is rising in tandem with the underlying index. The opposite is more usually the case. This would suggest that, while investors are happy to buy up anything from electric vehicle maker Tesla, to Apple, to Facebook, they are not unconcerned about a reversal in the tech sector’s fortunes.
Apple’s and Tesla’s stock prices could explode by about 33% in the 12 months after their stock splits, multi-asset investment platform eToro said last week. The firm analyzed 60 years of data and found that, on average, megabrands that split their stocks saw their share prices surge by a third in the year after the split.
MacDailyNews Take: Strap in for some volatility Apple longs!