The volatility index lost some ground on Friday, but closed the week higher by 15 percent.
The VIX fell 0.36, or 2 percent, to 17.47, making it the first down session in five. One week earlier, it closed at 15.18.
The S&P 500 rose 7 points to 1406.58 on the day, and edged lower by about 4.5 points on the week -- essentially unchanged as the VIX surged. While short term realized volatility gained, the VIX still has a rich premium compared to the kinds of moves we've been seeing in the market. The 10-day historical volatility for the SPX rose 7.5 percent, but the 20-day reading is at a new low of 6.25 percent.
September VIX futures fell 0.75, or 3.8 percent on Friday to close the week at 18.95. October futures were down 0.8 to 21.2. These remain at large premiums to the spot VIX and in steep contango, with later months are successively higher. It is important to remember that traders cannot "buy the VIX" and VIX options are based on the various futures.
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