The Volatility Index

The Volatility Index

Using VIX in Exposing Complacency
ByBrad May 14, 2011August 15, 2011

Using VIX in Exposing Complacency While much has been said about the efficacy of the VIX to expose rising fear in the market, the index also deserves at least the same amount of ink spilled for its ability to expose rising risk appetite, sometimes also known as rising complacency. The chart illustrates how…

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The Volatility Index

The Volatility Index
ByBrad April 28, 2011August 15, 2011

The volatility index (VIX) measures the volatility of a wide range of options on the S&P 500 Index and is used to gauge the markets’ expectations for volatility over the next 30 days. Quoted as a percentage, a VIX figure greater than 30 is associated with high volatility resulting from investors’ fear of uncertainty,…

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