A Historical Perspective On Volatility & The VIX

Discussion in 'Wall St. News' started by Sbelmont, Oct 13, 2008.

  1. A Historical Perspective On Volatility & The VIX

    Posted at www.TheOptionsInsider.com
    in Trading & Technology
    by The Options Industry Council

    A Historical Perspective

    "Everyone seems to think that this level of VIX is the highest ever. That’s not the case. When I created the VIX for the CBOE in 1993, I backdated everything until the beginning of 1986.

    The highest level was 172.79% in the market crash of October 1987. October 1997 and October 1998 also experienced levels nearing 60+%. Maybe the current situation is simply an “October effect.” Granted the original VIX based on the at-the-money OEX options and the new version based on all at- and out-of-the-money SPX options are slightly different, their levels and movements remain close."

    - Robert E. Whaley Valere Blair Potter Professor of Management, The Owen Graduate School of Management, Vanderbilt University

    Full Text of Article And Graph of VIX vs. DOW Available Here...
     
  2. good stuff, thank you!
     
  3. Not a problem.

    I've seen a lot of people pontificating on the VIX these days. But this is the first comment I've seen from the original creator of the VIX. I think his comments carry more weight than many of the recent VIX "experts" that are spouting their nonsense on CNBC, etc.