Stocks Set to Fall Again: Is This the Secret to Making Money When Markets Plunge?
Wall Street has been extremely turbulent lately, and on Wednesday morning, investors got another case of the jitters. Focusing on all the things that could go wrong in the market, major stock indexes were poised to lose substantial ground when the market opens. In premarket trading Wednesday morning as of 8 a.m. EDT, futures on the Dow Jones Industrial Average (DJINDICES: ^DJI) were down 326 points to 33,857. Futures on the S&P 500 (SNPINDEX: ^GSPC) dropped 48 points to 4,286, and Nasdaq Composite (NASDAQINDEX: ^IXIC) futures fell 186 points to 14,470.
Stock market volatility levels have been on the rise, and many investors are looking to protect themselves against further declines by looking to the options market. A key measure of volatility, the CBOE Volatility Index (VOLATILITYINDICES: ^VIX), has seen a couple of its biggest spikes all year come in the last couple of weeks. That has some investors looking for ways to profit -- and this morning, they're turning to exchange-traded funds designed to try to track the VIX.
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Source Fool.com
