vix

Discussion in 'Strategy Development' started by travis, Oct 17, 2003.

  1. travis

    travis

    The Vix is so low, that it seems to say that the stock indexes are about to fall.
     
  2. exactly. Saw it last night.

    regards
     
  3. vix is calculated differently now, it used to follow S&P 100 and now it follows S&P 500 so be careful.
     
  4. Use VXO to continue tracking the original VIX.

    Lawrence

     
  5. nitro

    nitro

    Thanks for that tip.

    nitro
     
  6. While that's correct, the new VIX, which has been pointed out is calculated differently and is based on the SPX rather than the OEX, actually correlates pretty well with the old VIX (though it does skew slightly lower). Given that correlation, it should continue to work as a contrary sentiment indicator (that is, to the extent the VIX still "works" for such purposes, which is in some doubt). Still, I keep both the new VIX and the VXO on my screen. For more detail, the CBOE has a whitepaper and maintains historical data for both the new and old VIX on its website.
     
  7. nitro

    nitro

    I just realized, is your handle a play on "Hello Dolly" ?

    nitro
     
  8. white17

    white17

    MacMillan is saying that VIX isn't necessarily what it use to be. The current readings, while seemingly are quite low, are still higher than actual market volatility. So don't look for a collapse just yet according to him. VIX could go lower still. Actual market vol =around 11
     
  9. Nitro,

    You're the first person on either this or the Optionetics board to get my somewhat obscure reference. Kudos!

    Regards,

    HD