VIX is dropping to stupid low levels.

Discussion in 'Trading' started by tradenstuff, Feb 2, 2013.

  1. And i have a feeling we are going to be here all year or more.

    <img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=3735423>
     
  2. Thanks for posting. It sure eases my concerns of volatility a bit. It's just weird watching the market go up and up with the news so optimistic all the time lately. They shrugged off the GDP decline. They also shrugged off unemployment too. It just seems we need a pull back. When it does come they will find something to blame. With all this up up and away the last week, I'd like to buy some cheap premium for a little pullback sometime this month. What do you think?

    The dollar gave some signs on friday of potentially waking up a little in the short-term.
     
  3. That chart suggests that the Bernanke Put may be in effect for another 18 months.



    :eek:
     
  4. so IB can lower their margin requirements now.. maybe?
     
  5. gtor514

    gtor514

    I've heard the VIX has absolutely no predictive properties whatsoever but your chart is interesting. It appears each major run up in the VIX is preceded by two successive spikes and then crash. I see we are sitting ahead of two spikes right now.. hmm.
     

  6. your wrong to make such assumptions... your sample is so small.. this could theoretically go on for a while.. lower vol usually is just an indicator of lower vol.. seems cyclical and it is.. volatility clusters.. maybe we will have a sell off that dwarfs all sell offs.. maybe it says between 10 and 18 for the next two years..