SPX implied Vol

Discussion in 'Options' started by option911, Oct 12, 2009.

  1. The VIX dropped to the lowest level we've seen since 08. I'm debating, selling more or buying what do you guys think?

    Mark S.

  2. wayneL


  3. Well the VIX dipped down to 22.80 today, closing 23.01, I know its not a perfect measure of vol, but I think vols are really getting low.

    I like your blog btw

  4. dmo


    It's been a little lower Mark - 22.48 on 9/11/09 and 22.19 on 9/23/09.

    Tell me what your outlook is for stocks and I'll tell you whether to be long or short the VIX. You'd have to be pretty bullish stocks to be short the VIX here, an aggressive stance given the move we've had over the last 7 months.

    So before you short more VIX here, ask yourself - do you feel lucky today? Well, do ya?
  5. wayneL



    I reckon Dirty Harry would have been a very good options trader. :D

  6. ammo


  7. Right, but this was the lowest close we have had. Anyway, wouldn't be surprized if we had some sort of small sell off here.

  8. wayneL


    Ahh I see that you were referring to VIX close... I was looking at intraday.

    BTW, return kudos for your blog. :)

    Nice one.
  9. THANKS!

  10. it is interesting to see people trade ( or treat ? ) VIX as people trade stock index.

    What is behind this VIX drop ? More SP index call buyers than put buyers nowdays ? Is this considered a bearish sign ?
    #10     Oct 13, 2009