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Volatility Index

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VIX trade ideas

NIFTY: "Vol" intine Day!It starts with dismay, overnight unwinding continues, NIFTY BANK starts to ascent, aided by Energy, held by the Metals. MSCI rejig has very minor impact on very selective spaces. It looked as if all is well at the close. Two indexes that needs the narrative to move on is VIX, India VIX it hit high and then closed again around 16, this one is not tradable. CBOE VIX, which is tradable hits 18 and closes near 16. VIX calls are bought, typically when markets expect down move, as the relative up move in VIX far outweighs the down move. This results in the put options on the Index buying as part of the dynamics. So, the Volatility or the Vol is rising. Analogy brings this rise almost like that one witnessed in Oct 21. We did loose near 12% from the ATH. The cause is the US Inflation report. It prints more than what the market bargained for, the Core has gone thanks to the services. The last six months of core up move alone on an annualised basis shoots upwards of 6% against the 2% path. The rate cuts move past the half year and may be four. Everything that is sensitive sold, nothing spared not even safe heaven Gold. Yields spike, Dollar Rallies, more to go than less. The cues, this time nothing ordinary a cut of near 1% looks reasonable that takes the base of 21500 under attack, once given we stare around 21000. The dynamics moved now, and one can expect slightly deeper cuts too, as long as we stay below the 21830-850 area. Later our Inflation numbers, then the UK inflation. Markets still digesting yesterday numbers, follow through is to be seen. Global Equity looks set for another 3-5% fall before we see any stabilisation. Difficult to push fresh shorts in picture, in any case the high of the first half hour remains the stops for shorts ditto for the longs the lows. Choose the time frame that suits, but for intra-day 30 min is apt. While capped 21830-850 bulls stare at 20900.
CBOE:VIX
by sreebhashyam
VIX vs S&P500The VIX index (officially known as the Chicago Board Options Exchange Market Volatility Index), developed by CBOE in 1993, is calculated based on the implied volatility of call and put options on the S&P500; index (SPX) over a 30-day period. The theory behind the volatility index is that if investors believe the market is going to decline, they will hedge their portfolios by buying puts (the right to sell an asset at a predetermined price before a specific expiration date). Conversely, if traders are bullish, they may not want to hedge against potential downturns. This index shows a negative correlation with the S&P500.; When there is high volatility, the VIX reaches high values and is often accompanied by declines in the S&P500;, indicating fear and pessimism in the market. These events often lead to significant movements in the stock markets. Conversely, when the VIX is at lows, there is confidence in the market and movements are smoother. Relevant VIX levels: VIX<20: Investor confidence. Often coincides with bullish periods for the S&P500.; 2030: Increased investor pessimism or fear. High volatility and the potential for significant downward corrections in the prices of the S&P500; and major stock indices.
TVC:VIXEducation
by JRiquelmeTrading
US VIX Alarming Further Sharp CorrectionThe US VIX (volatility index) is over heated at +32 which is unusual. As the US indices have been corrected up to 20-32% from the swing high, technically it is already a crash and enter of bear market especially the technology sector, the most hit one. Next level is recession. My observation is, the increasing VIX is alarming further potential sharp correction in the US market. So brace for the worst and plan your investment programs accordingly even though if it is mutual funds or SIPs. Personal views only. Please consult your financial advisors before investing or divesting in the market.
CBOE:VIX
by Day_Traders_In
US Volatilityhe Cboe Volatility Index (VIX) is a real-time index that represents the market’s expectations for the relative strength of near-term price changes of the S&P 500 index (SPX). Because it is derived from the prices of SPX index options with near-term expiration dates, it generates a 30-day forward projection of volatility. Volatility, or how fast prices change, is often seen as a way to gauge market sentiment, and in particular the degree of fear among market participants. The index is more commonly known by its ticker symbol and is often referred to simply as “the VIX.” It was created by the Chicago Board Options Exchange (CBOE) and is maintained by Cboe Global Markets. It is an important index in the world of trading and investment because it provides a quantifiable measure of market risk and investors’ sentiments. KEY TAKEAWAYS The Cboe Volatility Index, or VIX, is a real-time market index representing the market’s expectations for volatility over the coming 30 days. Investors use the VIX to measure the level of risk, fear, or stress in the market when making investment decisions. Traders can also trade the VIX using a variety of options and exchange-traded products, or use VIX values to price derivatives. How Does the VIX Work? For financial instruments like stocks, volatility is a statistical measure of the degree of variation in their trading price observed over a period of time. For example, on Sept. 27, 2018, shares of Texas Instruments Inc. (TXN) and Eli Lilly & Co. (LLY) closed around similar price levels of $107.29 and $106.89 per share, respectively. However, a look below at their price movements over the month (September) indicates that TXN (blue graph) had much wider price swings compared to LLY (orange graph). Thus, TXN had higher volatility than LLY over the one-month period.
CBOE:VIXLong
by Aryansahay1
CTS - #VIXGet out of stocks, very bad time to buy something in historical highs and in a face of war/nuclear war. Im finding entries in swiss franc. Regards This analysis is designed to provide information that CTS believes to be accurate on the subject matter, but is shared with the understanding that the author is NOT offering individualized advice tailored to any specific portfolio or the particular needs of any individual. The author of the analysis specifically disclaims any responsibility for any personal or other loss or risk incurred as a consequence, directly or indirectly, of the use and application of any of the contents of this analysis.
CBOE:VIXLong
by CaliforniaTS
VIXVIX has been forming quite a lot of gaps lately. This chart suggests remaining risk lower into filling the open gaps still, but the pattern is tightening and looks to come to a resolution at any moment between now and in the next week. This smaller pattern suggests room for a VIX breakout into the low to high. The longer-term structures continue building for a much larger move still to come in the future. It’s all part and parcel of a market that continues to live off. The main message: New highs or not, volatility , it’s coming. At least for a while.
CBOE:VIX
by Chrisler