VIX Index

Started by Stephanos, December 15, 2007, 20:01:49

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Stephanos

My word of advice: "Trade what you see, not what you believe."



Against the Standard Way of Thinking.

Stephanos

My word of advice: "Trade what you see, not what you believe."



Against the Standard Way of Thinking.

Stephanos

Is this a VIX alert for bottom?
My word of advice: "Trade what you see, not what you believe."



Against the Standard Way of Thinking.

tsip

Κάτι τέτοιο συμβαίνει....
Αγοράζουμε τις διορθώσεις!!! ΑΚΟΜΑ!!!

anti

H megali epistrofi!! O S&P gyrise thetikos  :D
New traders think about how much money they can make while professional traders think about how much money they can lose.

Ceo

#110
fobera antanaklastika! polu ekguri episimansi!!

Quote from: Stephanos
Is this a VIX alert for bottom?

Quote from: tsip
Κάτι τέτοιο συμβαίνει....

gurisan kai oi 3 kurioi deiktes panw ...
... μνημόνιο για τους πολιτικούς, πότε ??

Stephanos

Το διάγραμμα. Αφήνει ωστόσο περιθώρια για περαιτέρω άνοδο. Ενδιαφέρον!
My word of advice: "Trade what you see, not what you believe."



Against the Standard Way of Thinking.

tsip

Quote from: tsip on September 15, 2008, 23:14:19
Μπορεί να δούμε και κανά overshooting προς τα 40 πρώτα...
Quote from: Stephanos on September 15, 2008, 23:18:03
Ναι φυσικά.

Έγινε και το overshooting...
Αγοράζουμε τις διορθώσεις!!! ΑΚΟΜΑ!!!

mpamias

mexri pou mpori na pai aftos o kataramenos esis pou zisate proigoumena bear market?
Economists are good at predicting recessions. They've predicted eight of the last three

Stephanos

My word of advice: "Trade what you see, not what you believe."



Against the Standard Way of Thinking.

mpamias

thx stef....very critical point then...
Economists are good at predicting recessions. They've predicted eight of the last three

Ceo

#116
aplws mia sundesi me to xthesino:

Quote from: Stephanos on July 05, 2008, 18:40:40
The VIX shot up to 37, intraday, at both the January and March market lows, as the Dow and the S&P 500, or SPX, plummeted to severely oversold conditions. Eventually, the volatility index retreated as the market rallied. In fact, virtually all previous market bottoms have been marked by an extreme spike upward in the VIX, followed by a quick downward reversal. The spike's trigger: panic by investors racing to buy SPX puts as the market plunges.

... xthes pige sxedon 42 kai meta 32
... μνημόνιο για τους πολιτικούς, πότε ??

cathan

ούτε καν στο 40,...
Υπήρχε ένα σχόλιο από κάποιο φίλο στο forum σχετικά με το short ban & την εικόνα που δείχνει το vix..δηλ. ποιό θα είναι το implied volatility στην αγορά αν δεν υπάρχει short θέση? ή τουλάχιστο είναι κουτσή?
"If you can meet with Triumph and Disaster and treat those two impostors just the same, you'll be a man." Rudyard Kipling

cathan

Cboe Volatility Index. VIX (INDEX)
45.86Change:+11.12 +32.01%

we have a winner...
"If you can meet with Triumph and Disaster and treat those two impostors just the same, you'll be a man." Rudyard Kipling

Stephanos

VIX VOLATILITY INDEX HITS HIGHEST LEVEL SINCE THE MARKET OPENED ON 9/21/01 POST-911
- the index reached 48.40 a few minutes ago, nearing the post-911 spike of 49.35, which was the all time high in the VIX


My word of advice: "Trade what you see, not what you believe."



Against the Standard Way of Thinking.

Ceo

(me tetoies sugkiniseis) .... nomizw to xthesino 'prepei' na postaristei (an kai isws doume kai xeirotera prosexws)
... μνημόνιο για τους πολιτικούς, πότε ??

Stephanos

VIX at 45.25 and still no real sell off...  :-\
My word of advice: "Trade what you see, not what you believe."



Against the Standard Way of Thinking.

tsip

Ναι, περίεργο...
Αγοράζουμε τις διορθώσεις!!! ΑΚΟΜΑ!!!

Stephanos

Η αγορά φαίνεται να έχει υποστεί καρδιακή προσβολή.
My word of advice: "Trade what you see, not what you believe."



Against the Standard Way of Thinking.

mpamias

mono o yiakoup mas sozi ;D
Economists are good at predicting recessions. They've predicted eight of the last three

Stephanos

My word of advice: "Trade what you see, not what you believe."



Against the Standard Way of Thinking.

cathan

NO MAJOR PANIC? ???
"If you can meet with Triumph and Disaster and treat those two impostors just the same, you'll be a man." Rudyard Kipling

Stephanos

Τον βλέπω για το 70.
My word of advice: "Trade what you see, not what you believe."



Against the Standard Way of Thinking.

Stephanos

My word of advice: "Trade what you see, not what you believe."



Against the Standard Way of Thinking.

Ceo

sugnwmi gia tin erwtisi, alla eisai sigouros gia to 'all time high'?

den exw data gia na to amfisbitisw euthews, alla thumamai oti prin 2-3 meres pou diabaza (den exw to link kai den thumamai pou twra, CNN, FT, Guardian, ...) oti eixe kanei kai (polu) anw tou 50 arketa paliotera

isws na min exei kai toso simasia i episimansi mou, tetoies meres, aplws gia to 'integrity' tou forum
... μνημόνιο για τους πολιτικούς, πότε ??

Stephanos

My word of advice: "Trade what you see, not what you believe."



Against the Standard Way of Thinking.

Stephanos

My word of advice: "Trade what you see, not what you believe."



Against the Standard Way of Thinking.

Stephanos

My word of advice: "Trade what you see, not what you believe."



Against the Standard Way of Thinking.

Stephanos

My word of advice: "Trade what you see, not what you believe."



Against the Standard Way of Thinking.

mpamias

Simadia adinamias ston vix den vlepi kanenas allos i estraothika?
Economists are good at predicting recessions. They've predicted eight of the last three

Stephanos

Είναι απίστευτο!
My word of advice: "Trade what you see, not what you believe."



Against the Standard Way of Thinking.

Stephanos

My word of advice: "Trade what you see, not what you believe."



Against the Standard Way of Thinking.

Stephanos

Και όμως δεν μας έχει δοθεί ακόμη κάποιο sell signal.
My word of advice: "Trade what you see, not what you believe."



Against the Standard Way of Thinking.

michael

den xero an tha dothi tora amesa..giati ke ena rally na gini tha ine toso volatile ,diladi grIgorA PANO ke meta isos pali kato ..imaste diladi sta prasina kivotia ton sximaton crash pou dixnis, opou tha exoume ke pano ke kato me volatility ke oxi MONO kato
O VIX THA PESEI OTAN IREMISI I AGORA..

Stephanos

The Soaring VIX

Posted by David Gaffen

The market is experiencing an unprecedented level of fear, but that does not necessarily mean that this fear will subside quickly, as has happened in the past.

The Chicago Board Options Exchange volatility index, or the VIX, was lately trading at 73.16, and hit a high of 74.46 during the day, the highest ever since the calculation of the VIX was changed in the early 1990s. Often, the expectation is that the VIX will soon fall, because once the market populace has taken out insurance against declines, people tend to start buying shares again. "Insurance changes behavior," notes Howard Simons, analyst at Bianco Research LLC.



But don't expect that to happen just yet. "So long as fear remains high which is now due to the contagion, then the VIX can stay high," says Fred Ruffy, options strategist at Whatstrading.com. He notes that 20-day historical volatility is now over 60, which translates to an annualized move of more than 60% in the S&P 500. With historic volatility still very high, it ends to "put a floor under the VIX."

Furthermore, the rapid decline of a number of components of the S&P towards $0 — which isn't likely, but becomes a concern — causes more people to buy protection at a cost that's near the actual amount of the put options' strike price. In other words, a put option with a strike price of $10, would potentially cost $9.95. Because of the mechanics of options trading, normally the volatility is higher for out-of-the-money puts (say, a $10 put strike for a stock trading at $30).

As option prices increase, volatility increases, and the VIX is more heavily weighted towards at-the-money strikes. This causes the VIX to rise and "forces those who have sold it in whatever form to sell ever-greater quantities of stock at ever-lower prices to hedge themselves," Mr. Simons says.

That's because those people selling protection are becoming increasingly exposed to rising volatility, and they themselves need to protect against that, potentially by selling more stock. The result is a vicious loop.

"The mean-reverting process is now disconnected, where before you were pricing in a bear market you're now pricing in the risk of ruin," Mr. Simons says.

My word of advice: "Trade what you see, not what you believe."



Against the Standard Way of Thinking.