VIX??????

Babak · Mar 21, 2002

LightningSmurf, check this link for all you wanted to know about VIX and then some:

http://www.cboe.com/MktData/vix.asp

volkl151 · Mar 21, 2002

Larry Connors (Trading Markets) was actually on Bloomberg the other day talking about VIX and his CVR's (Connors VIX Reversals). The next day or two could be a significant reversal in the market if we make a VIX lower low over the last 5 days, then continue to close higher than we opened on that particular day. This signals that fear in the market is too low at this point, and even more so b/c we're approaching a 52-week low, then you get short the spooze, spys, e-minis whatever and hold for 2-3 days. I'm very interested to see if it plays out.

nitro · Mar 21, 2002

Hi,

I saw the posting on VIX and would like to know more about the indicator (?). Presumably VIX refers to "volatility index" but looking through my T.S.6 canned indicators I didn't see it listed. Is it something only used for options, or can equity swing traders use it to their advantage also? If so, how?
More...

In TS6, the vix is not an "indicator," it is an index. The symbol is $vix.x

nitro

nitro · Mar 21, 2002

Also from thestreet.com, I got a neat idea attempting to explain the subdued VIX readings. The theory is based on the long convertible bond, short call strategy that a lot of people are using these days. With the massive amount of conv bonds issued last year and so far this year, there is a corresponding massive amount of calls written. All this supply of calls, so goes the theory, helps to make volatility "cheap".
More...

This is very satisfying. Do you have a link to the article?

nitro

Babak · Mar 21, 2002

nitro,

http://www.thestreet.com/markets/aarontaskfree/10013523.html

ask and ye shall receive

nitro · Mar 21, 2002

thx!

Very interesting indeed!

nitro

NiteRider · Apr 1, 2002

This has been a very educational thread.
Thanks to all the folks who posted information and links in this thread.