Tag Archives: VIX
The CBOE volatility index® VIX® is an instantaneous measure of expected fluctuations in S&P 500 in the next 30-days. This is an instrument for short-term traders. Passive investors should use different measures of risk. I offer an example.
The daily returns of the S&P 500 exhibit mean-reverting behavior since the late 1990s but the index reached new all-time highs recently. I show in this article that this has been accomplished at increasing risk, despite beliefs that volatility is … Continue reading
Although the high of VIX was below 11 on January 27 of this year, the SPY ETF has gained 1.11% since. Some traders expected a quick rise in volatility and shorted the market but any gains in VIX evaporated fast … Continue reading
This article rebuts claims by some market analysts about VIX and exposes the main flaw in strategies developed by inexperienced quants that trade volatility ETPs . For access to premium content, you must be a subscriber. Please login if you are … Continue reading
I just about had it with all that VIX nonsense in the social media. VIX is an overrated indicator that reacts to price. Price is everything and VIX obeys price in a special way: When prices rise, VIX falls and … Continue reading