Record Gap Between Individual Stock Volatility and VIX Hits 34 Points
The divergence between individual stock volatility in the S&P 500 and the VIX has reached a record 34 points, surging 127% since March, indicating hidden stress beneath a calm index.
The gap between individual stock volatility within the S&P 500 and the CBOE Volatility Index (VIX) has blown out to a record 34 points. This spread has widened by 19 points, or 127%, since March.
The individual stock volatility index has risen 9 points to 49, its highest level since March 2025. Over the same period, the VIX has fallen 16 points to 15, the lowest since mid-January. This divergence suggests that while broad market indices appear calm, single stocks are under significant pressure.
The artificial suppression of index volatility is attributed to continued concentration in mega-cap technology stocks. According to market commentary, individual equities are trading as if a correction has already occurred.
Source: The Kobeissi Letter