Thus the classic VXO remains more responsive to fear spikes than the new VIX. Whether you prefer the VXO or VIX, trading stock fear is easy to understand. Speculators should sell their positions to realize profits after major uplegs …
Fear
Among those possibilities, the Chicago Board Options Exchange (CBOE) volatility index, widely known by its ticker symbol VIX, has effectively become the standard measure of volatility risk for investors in the US stock market. …
VIX
Stock are so volatile that they’ve short-circuited the CBOE Volatility Index. A CBOE spokesman said VIX, commonly known as the stock market’s fear gauge, experienced quoting problems because of the whippiness of Standard & …
... calls are based on VIX futures instead of the more volatile “spot” VIX, in the past I suggested that it would be easier to hedge a portfolio against a “black swan” stock market decline using S&P 500 puts–either the cash-settled SPX index ...
A particularly strong post-Fed fade of volatility. The VIX returns right back to the previous consolidation zone. As I noted in my last T2108 Update, I was primed to fade volatility ahead of the Fed announcement. As the chart above shows, the …
As stock market indexes are not tradeable, the importance and trading volume of Exchange Traded Funds (ETFs) cannot be understated. ETFs track and attempt to replicate the performance of a specific index. Numerous studies have …
So the new ETN from UBS will offer investors an opportunity to establish exposure to stock market volatility while eliminating some of the often adverse impact of contango in VIX futures markets. The underlying strategy is appealing …
August saw a huge jump in the VIX index, which measures equity volatility. VIX ETPs are proving popular with investors amid the stock market choppiness. IBD spoke to Nick Cherney, head of exchange traded products at Janus Capital …
Trade
So this huge dollar rally could end up hurting our stock market big-time in the weeks and months ahead. Secondly, the CBOE Volatility Index (VIX) is way too low. The VIX measures how volatile the S&P 500 is. It's also known as the "fear …
Prepared statement
Both types of contracts or derivatives let investors bet on the future price of a stock or any other type of asset. Trading volume typically spikes dramatically on "quad witching" days. Today's sharp move up is one of the few big daily moves …