Stocks tanked on Thursday, taking 401(k) balances, brokerage accounts and individual retirement accounts with them. However, the same volatility that caused so much havoc in long-term investor portfolios created the type of opportunity that short-term traders rely on for profit.
The volatility during the big sell-off – the biggest in nine months – was reflected in the Volatility index, or Vix. Based on the implied volatility of options listed on the Chicago Board Options Exchange, the Vix jumped a whopping 21% to 26.08.
For many, it was a day-trading dream come true...