What the Volatility Index Tells Us About the Market
What the Volatility Index Tells Us About the Market
Anyone will find the value of the Volatility Index, or VIX. Simply visit Yahoo! Finance and within the quote box, kind "^VIX" (minus the quotation marks in fact) and you'll be delivered to a page that offers you the present value of that index. Of course, that outline page appearance like all other price quote and by itself can tell you simply what that index is value at that specific time (or 15 minutes ago if you're trying at the delayed figure).
That figure says nothing on its own. However, if you plot it against a graph, it can indicate a couple of key things that may facilitate investors decide whether to enter or exit the market relying on their current position(s). Here are 2 things that the volatility index will tell you once plotted on a chart of 5 years:
1. Is this market direction sustainable? When volatility rises, the indication is that this trend can accelerate or it will reverse suddenly. Whereas this ...
Posted : August 11, 2010 | 
Comments : 0 | 
Volatility: Friend or Foe?
Volatility: Friend or Foe? by Smart Trade Pro
I’ve had some interesting discussions with folks over the past several weeks on several polarizing topics. For example, we’ve discussed whether government subsidies are a good thing. In general, they’re great for those being subsidized and not so hot for those taxpayers paying the subsidies. Of course, the greater good can be achieved by such government subsidies, but they can also cause undesirable effects. There are definitely two sides to the argument!
In the markets, one of the topics that produces a broad range of responses is volatility. We’ve seen marked increases in volatility across almost all trading instruments since the summer of 2008.
Is this a good or bad thing?
One thing is fairly certain – higher levels of volatility are most likely to be with us for quite a whi...
Posted : February 23, 2010 | Comments : 1 | VXX
The S&P 500 VIX Short-Term Futures Index TR is designed to provide access to equity market volatility through CBOE Volatility Index® (the "VIX Index") futures. Specifically, the S&P 500 VIX Short-Term Futures™ Index TR offers exposure to a daily rolling long position in the first and second month VIX futures contracts and reflects the implied volatility of the S&P 500® Index at various points along the volatility forward curve. The index futures roll continuously throughout each month from the first month VIX futures contract into the second month VIX futures contract.
A direct investment in VIX (commonly referred to as spot VIX) is not possible. The S&P 500 VIX Short-Term Futures™ Index TR holds VIX futures contracts, which could involve roll costs and exhibit different risk and return characteristics. Investments offering volatility exposure can have various uses within a portfolio including hed...
Posted : February 03, 2010 | Comments : 1 | VIX
VIX is the ticker symbol for the Chicago Board Options Exchange Volatility Index, a popular measure of the implied volatility of S&P 500 index options. A high value corresponds to a more volatile market and therefore more costly options, which can be used to defray risk from this volatility by selling options. Often referred to as the fear index, it represents one measure of the market's expectation of volatility over the next 30 day period.
The volatility index is an index which measures expectations of volatility, or fluctuations in price, of the S&P 500 index. Higher values for the volatility index indicate that investors expect the value of the S&P 500 to fluctuate wildly - up, down, or both - in the next 30 days.
Posted : November 05, 2009 | Comments : 1 | 
More Articles
News Headlines
Odd action at close sends VIX to lows...
Published: Thu, 10 May 2012 22:47:02 -0700
The CBOE Volatility Index collapsed back near its session low yesterday after odd action into the close. The VIX was finished at 18.83, down 1.25 points, or 6.23 percent. More tha......
VIX Lowest to CDS Since ’09 as Stock ...
Published: Mon, 07 May 2012 07:05:55 -0700
Risk perceptions among U.S. equity and credit investors are diverging the most since 2009 as signs of an economic slowdown spur bigger increases in prices to protect against losse......
Volatility Shunned as VIX ETN Nears One...
Published: Tue, 01 May 2012 10:18:44 -0700
No one seems to want to buy volatility. The largest exchange traded product indexed to VIX futures fell more than 3% on Tuesday and is languishing near its 52-week low.The $1.8 bi......
Numerix CrossAsset Introduces Innovativ...
Published: Wed, 02 May 2012 05:00:00 -0700
Numerix , the leading provider of cross-asset analytics for derivatives valuations and risk management, released in its latest version of Numerix CrossAsset innovative model cover......
VIX swings with SPX before closing lowe...
Published: Mon, 07 May 2012 22:46:55 -0700
The CBOE Volatility Index was up yesterday morning but finished the day lower. The VIX ended the day at 18.94, down 0.22 points, or 1.15 percent. It climbed near the 20 level earl......
VIX futures higher with volatility inde...
Published: Thu, 03 May 2012 22:46:43 -0700
The CBOE Volatility Index rose about 4 percent yesterday, and the VIX futures followed suit as the S&P 500 fell back below 1400 again. The VIX ended the session up 0.68 points to......
Published: Thu, 10 May 2012 22:47:02 -0700
The CBOE Volatility Index collapsed back near its session low yesterday after odd action into the close. The VIX was finished at 18.83, down 1.25 points, or 6.23 percent. More tha......
VIX Lowest to CDS Since ’09 as Stock ...
Published: Mon, 07 May 2012 07:05:55 -0700
Risk perceptions among U.S. equity and credit investors are diverging the most since 2009 as signs of an economic slowdown spur bigger increases in prices to protect against losse......
Volatility Shunned as VIX ETN Nears One...
Published: Tue, 01 May 2012 10:18:44 -0700
No one seems to want to buy volatility. The largest exchange traded product indexed to VIX futures fell more than 3% on Tuesday and is languishing near its 52-week low.The $1.8 bi......
Numerix CrossAsset Introduces Innovativ...
Published: Wed, 02 May 2012 05:00:00 -0700
Numerix , the leading provider of cross-asset analytics for derivatives valuations and risk management, released in its latest version of Numerix CrossAsset innovative model cover......
VIX swings with SPX before closing lowe...
Published: Mon, 07 May 2012 22:46:55 -0700
The CBOE Volatility Index was up yesterday morning but finished the day lower. The VIX ended the day at 18.94, down 0.22 points, or 1.15 percent. It climbed near the 20 level earl......
VIX futures higher with volatility inde...
Published: Thu, 03 May 2012 22:46:43 -0700
The CBOE Volatility Index rose about 4 percent yesterday, and the VIX futures followed suit as the S&P 500 fell back below 1400 again. The VIX ended the session up 0.68 points to......
