NEW YORK, July 27 (Reuters) - Speculators increased their net shorts in Cboe Volatility Index futures to the highest levels in about six months this week, signaling their bets the U.S. stock market would stay in a narrow trading range, according to Commodity Futures Trading Commission data released on Friday.
The amount of short or bearish bets on futures of the VIX index, commonly referred to as Wall Street’s fear gauge, exceeded long or bullish bets by 86,161 contracts on July 24, CFTC’s latest Commitments of Traders data showed.
This was the highest level of net shorts among speculators since 90,170 on Jan. 23.
The VIX index rises when Wall Street is volatile, while it falls when the stock market trades in a modest range daily.
On Friday, the VIX edged up 0.89 point to 13.03, holding near the lower end of its trading range since early June. (Reporting by Richard Leong Editing by Tom Brown)