The VIX Index jumped higher to open above a downward sloping trend that has lasted since late-April. Reasons for the spike in the volatility index are uncertain but could include some of the following:
Last week I showed you how and why the CBOE Volatility Index (VIX) still works. You know that popular delusion now suggests the VIX is a broken indicator. I’m afraid that’s not true and if you take a serious look at the world around you, the VIX just so happens to work better than it ever has.
The VIX is broken and other true classroom flubs and fluffs. I’m probably dating myself but that was a great comic strip when I was growing up in the New York newspapers in case you were wondering.
Trading volume in CBOE Volatility index VIX futures hit an all-time high in
January, suggesting investors were busy buying protection
against a market decline.
Every morning that I’m at CBOE I will check the VIX futures volume in the extended hours session and put a tweet out regarding the volume and front month price change.
An investor sold about $18 million in calls on the Chicago Board Options Exchange Volatility Index, a strategy that will be profitable as long as the VIX doesn’t keep extending last week’s surge.
Wednesday was a boring day for VIX traders and the January Settlement came out later after a delay at CBOE.
A rundown of Tuesday’s Vix Market.
Brief Wrap Up: Yet another YEN carry trade fueled rally, to take the indexes fresh all time highs, as the SPX finally hits and crosses the 1850 line.
2014 is well underway and as the ‘polar vortex’ headlines melt away, trader’s focus is back on US and global economic conditions, tapering and the slew of earnings data set to be […]