Recovery of Volatility Product Losses During the 2020 Market Crash

The securities attorneys in the Business Trial Group are investigating investment losses in products tied to volatility or the volatility index (VIX).

Volatility measures the degree of variation in a particular instrument’s trading price over a certain time period. For example, when stock prices endure wild swings, volatility is high.

VIX is an index reflecting the market’s expectation of volatility in the next 30 days. The VIX is calculated from S&P 500 index options. It is often called the “fear index” because it tends to reflect investors’ risk appetite.

In the past decade, many funds and trading strategies have been tied to volatility or the VIX. When markets are relatively calm, many volatility funds can provide attractive returns. But when volatility unexpectedly returns, some of these funds may experience heavy losses.

2020 has been marked by perhaps the most extreme volatility that the markets have ever endured. If you were invested in a volatility fund, you may have suffered large losses. The securities attorneys at the Morgan & Morgan Business Trial Group are here to help.

The Business Trial Group is part of the largest contingency law firm in the nation, with more than 700 lawyers and offices nationwide. Our attorneys have helped investors recover investment losses totaling tens of millions of dollars, and our attorneys are only paid if we successfully recover money for you.