Every Monday Vix Gaps Higher

Discussion in 'Trading' started by myminitrading, Feb 12, 2007.

  1. Has anyone ever noticed this? several monday back the markets opened higher and the Vix gapped open over 5%, why is this? why does it always open higher?
     
  2. The VIX is calculated off calendar days but the market trades on business days...
    There is a lower VIX on Friday as there is no trading on the weekend, so lower average vol.
     
  3. VIX = index option decay, which is based on calendar days. That's why short option positions love three-day weekends and holidays... free money! :>)
     
  4. minmike

    minmike


    Free money... Until there is a terrorist attack.