In fact, during one of those Fast and Furious moves, the VIX surged more than 50%! (See number 2 on the chart below) Despite one all-time high after another in the U.S. stock market (NYSEARCA:VTI), there’s been little conviction about …
1. The trend has been down with each successive peak being lower. (A lower VIX correlates with a higher stock market and a higher VIX with a lower stock market.) 2. The last peak breached the resistance line which is normally a not so good …
New York: Investors snapping up insurance against stock losses after $1 trillion was erased from US equity values have pushed the cost of options to a record increase for the start of a year. The Chicago Board Options Exchange (CBOE) …
Trading stock market volatility is not for the faint of heart. And if you're a volatility trader, you've either personally experienced or are at least aware of the performance discrepancies between the CBOE S&P 500 Volatility Index …
In its original form, the VIX was constructed by using a weighted average of the implied volatility of the at-the-money and near-the-money options on the S&P 100 index. Measuring Stock Market Volatility:Measuring the S&P 500 on the VIX …
For months, the VIX has hovered in the low to mid teens, which is slightly lower than average. But after China’s stock crash and economic slowdown began to infect the global markets, the VIX jumped to a reading of around 35. The bulls are …
Contrary to what most people think, the VIX doesn't measure actual stock market volatility. Instead, it tracks the trading in options on the S&P 500 to indicate how investors expect the market to move over the next 30 days. In this case, as …
As I noted last week, index volatility shot up way faster than individual stock volatility, implicitly a bet on increased correlation going forward. The correlation I refer to here is individual stocks moving in lockstep with each other. Don …
"But I do see that there was a spike on the chart up to 21.26. It looks a little suspicious." The VIX is a 30-day risk forecast of stock market volatility that is calculated by using a strip of S&P 500 index option bid-ask quotes. The VIX generally …
Because the VIX moves inversely to the stock market. Note the current level of the VIX ... it is pretty close to the support line. If it can fall below that level at the close today, it will have a shot of breaking its up trending.