11/19/2013 TUES
VIX CBOE Volatility Index
VIX CBOE Volatility Index
“The
ticker symbol for the Chicago Board Options Exchange (CBOE) Volatility Index,
which shows the market's expectation of 30-day volatility. It is constructed
using the implied volatilities of a wide range of S&P 500 index options.
This volatility is meant to be forward looking and is calculated from both
calls and puts. The VIX is a widely used measure of market risk and is often
referred to as the "investor fear gauge."”
“VIX
values greater than 30 are generally associated with a large amount of
volatility as a result of investor fear or uncertainty, while values below 20
generally correspond to less stressful, even complacent, times in the markets.”
Looking
very tempting down here around the 12% level, looks like it spikes every couple
months over this past year, and from this area, last spike was on 10/9/2013,
with all the spikes this year getting up at the very least to the 17% level and
above. Looking at the Dec 13/18 call vertical for 1.15 or better looks like it
closed on the mid-point of 1.25, also looking at the Dec 13/18/23 call
Butterfly for .75 or better, but more
inclined to work the call vertical.
*Also for trading ideas and
commentaries and responses from industry professional go to
https://mtmtradercommunity.com
*Disclaimer: This is not a
recommendation. All trading entails risk. Anyone employing any strategies and
having limited knowledge of options trading should consult with a FINRA
licensed professional.
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