VIX Drops to Lowest Level Since Lehman’s Collapse as Fear Ebbs

June 29 (Bloomberg) -- The benchmark index for U.S. stock options returned to its level before the September collapse of Lehman Brothers Holdings Inc., as an almost four-month rally in equities and signs the economy is improving helped calm concern spurred by the worst recession in 51 years.

The VIX, as the Chicago Board Options Exchange Volatility Index is known, lost 2.2 percent to 25.35 at 4:14 p.m. New York time, putting it below the Sept. 12 close of 25.66. It measures the cost of using options as insurance against declines in the Standard & Poor’s 500 Index, which added 0.9 percent. (more)