Why do you think the VIX is so extremely low??

Discussion in 'Trading' started by spanish89, Jul 6, 2012.

  1. The Vix has fallen and then remained extremely low despite the huge huge amount of very dangerous negative news and events in the market/world over the last few weeks that all had the potential to cause mass market meltdowns!
    But yet no-one is scared, as the Vix is near the lowest its been in the last 50years!

    Today for example the dow crashed 150+ points, and yet the vix is actually somehow down 1% today... :confused:

    Why do you think this very wierd and illogical occurence is happening though?
  2. zdreg


    this thread is a worthy topic. maybe the market is looking for a gradual inflation of assets because of loose monetary policy.

    any movement in vxx on a given day is meaningless. only the trend counts.
  3. I interpret it as a consequence of having 3 years of very strong bounces following any down legs we have. It's easy for the bulls to get complacent in these conditions. There's probably also the assumption if things get very bad again it will force the Fed to do more which will limit the immediate downside we face.
  4. generally spot vols come off after event days (such as NFP) even when mkt goes down, plus today is friday. don't be shocked at +1 on monday even if we are in a tight range.
  5. lindq


    The VIX is not at record lows. The 30-day MA of the VIX is currently over 21, which is slightly higher than a long-term average, which is about 19.
  6. What he said. We are talking about options vol, after all.

    *[size=-2]The op IS The Resident Genius, inn't he? Just wondering, is all....[/size]
  7. Spot on.