What does a VIX of 80 mean? Net VIX exposure is sitting near its all-time low. What does a low VIX mean? ... Low VIX readings, in fact, are indicative of complacency, which almost always leads to declines that surprise the market. Since the VIX level at any point may be naively interpreted as a prediction for the At VIX Trader, we don’t care because we plan to feast when volatility spikes, as it inevitably will, but here are the facts as they stand today. In fact a good portion (about 1/3) of the S&P gains over the last 10 years have come under these conditions. VIX and Stock-Market Behavior . I think we can dig deeper than that. What is the VIX and does its recent drop mean the worst is over? Woodshedder Sun Aug 19, ... You’ll note the Trading Markets and WSJ posts simply note that the VIX is low, that it has been low before, and that it could go lower, or not. They do not expect a lot of volatility in the markets and feel more confident. However, a high VIX index does not automatically mean stocks are bearish. SP 500 e-mini futures have had 13 straight trading days without a down day, Next week's at the money SPY put options closed at an implied volatility of 7.86%, first time I can ever remember SPY options trading below 8% implied vol.So what does t On April 12, 2010 the VIX fell as low as 15.23. Does a Falling VIX Mean the Worst is Over? What a week for the VIX...new 7 year low, now trading with a 10 handle (closed at 10.73), with a two day drop of 16% post ECB announcement last Thursday. The S&P 500 topped on April 26 and dropped 17% thereafter. The CBOE Volatility Index (VIX) is a measure of expected price fluctuations in the S&P 500 Index options over the next 30 days. This is one indicator that doesn’t work as well on bottoms as it does on tops. So the level it’s at today is very, very normal. What does a low VIX mean for stocks? With the VIX inching lower again on Friday, investors and market watchers are at odds over what factors are driving ultra-low volatility and what it might portend for the markets. The VIX represents the S&P 500 index +/- percentage move, annualized for one standard deviation. To understand, first we need to learn more about what the VIX is and isn’t. What does reliability mean? To sum up - just because the VIX is “low” doesn’t mean the market is about to fall. Ron DeLegge, ... Low VIX readings, in fact, are indicative of complacency, which almost always leads to declines that surprise the market. Which, as it happens, is exactly what the VIX is designed to do. Naively, if the VIX index is low, one would expect the volatility in the market several months in the future to be low. VIX (blue, left axis) vs. S&P 500 (red, right axis) So why does this matter? Spikes in the VIX and outlier days, drive up that average. What does the number mean? It's just … The VIX is back to the low levels we saw last summer/fall before a nasty decline ensued. The VIX is based on data collected by the Chicago Board Options Exchange (CBOE).Each day the CBOE calculates a figure for a "synthetic option" based on prices paid for puts and calls.The computation of the VIX was changed in 2003 and is based on the S&P 500 option series. VIX -- The Chicago Board Options Exchange Volatility Index, or VIX, as it is better known, is used by stock and options traders to gauge the market's anxiety level. Traders are not as likely to be buying insurance on stocks. A low VIX in 2010 and 2011 always spelled trouble for stocks. A low VIX typically means that option prices are lower. Given the devastating impact of the COVID-19 pandemic on global markets, ‘fear’ certainly feels like an apt word to reach for when attempting any sort of market forecast right now. VIX (NYSEARCA:VXX) traders shorting the VIX have had a great year so far, VIX Trader included, but one can only wonder how long can this party go on? On April 20, 2011 the VIX moved as low as 14.30. …the VIX has spent over half of its time over the past two decades (from 1992 through Tuesday) between 10-20. For those interested in what the number mathematically represents, here it is in the most simple of terms. A Really Low VIX Doesn’t Mean It Can’t Go Lower. 1) Just because the VIX is low doesn’t necessarily mean the market can’t continue to move higher — a lesson illustrated vividly by various data points above and the entire 2004-2006 period. VIX continues to plumb new lows. November 2017 INDEX INVESTMENT STRATEGY 3 500 realized volatility3 between Dec. 31, 2016, and Nov. 22, 2017. How does the Volatility Index (VIX) work? “Be careful if you think the VIX has nowhere to go but higher”….the VIX has a history of remaining depressed during long periods of time — like they did between 2004 and 2007 when stocks slowly drifted higher. In the wake of Twitter rants and and nuclear missile tests, the stock market has succeeded in doing something it hasn't done in almost 2.5 decades.The VIX is at its lowest point in 24 years. When the VIX moves out of complacent territory and back towards its mean, then the market is … With VIX around 24, just above the long-term average of 19, many investors are positioning for volatility to fall even lower—perhaps commencing a new era of low volatility. … The predictive nature of the VIX makes it a measure of implied volatility, not one that is based off historical data or […] A low VIX doesn’t necessarily mean the stock market is nearing a top—or even a speed bump. The same top and drop scenario happened in 2011. VIX is the ticker symbol and the popular name for the Chicago Board Options Exchange's CBOE Volatility Index, a popular measure of the stock market's expectation of volatility based on S&P 500 index options.It is calculated and disseminated on a real-time basis by the CBOE, and is often referred to as the fear index or fear gauge.. Over its long history, the S&P 500 has moved a little under 1% each day, on average. Instead, the high VIX value is merely a representation of the fact that the market expects a sharp trend in momentum, either upward or downward. So what does that mean? While there are other factors at work, in most cases, a high VIX reflects increased investor fear and a low VIX suggests complacency. What is the VIX and what does it mean? In the simplest possible terms, it means that the market expects daily moves in the equity markets to be around four times larger than normal. 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