Dow historical volatility since 2011

Discussion in 'Index Futures' started by Error Correction Funder, Apr 6, 2018.

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  2. Overnight

    Overnight

    How about the volatility since 1925 or so? That would be a better chart to gauge anything, methinks.
     
  3. Overnight

    Overnight

  4. What is "Dow Realized Vol", as compared to the VIX let's say? The VIX is a lot higher than it was a few months ago, but I don't think that far from its historical norm. It can go a LOT higher. Not sure what Dow Realized Vol is.

    Thanks!
     
  5. The VIX is the projected volatility, called implied volatility, for the S&P 500. The S&P 500's realized or statistical volatility is a trailing version of the VIX that happened in reality.

    Realized volatility is usually below the VIX, implying that option buyers are buying at a premium, but now realized volatility is higher than the VIX, implying that option sellers are selling at a discount.