The VIX Holds Above 30...Again
by Jay Pestrichelli on October 12th, 2011
The VIX defends the 30 level one more time today. An index that tracks the implied volatility of the S&P 500, the VIX, is used as a measurement of how volatile the market is considered to be. The higher the VIX goes, the higher volatility.


When the S&P 500 reached its highest point this afternoon at a much discussed resistance level of 1220, the VIX dipped to 29.80, but once again the last half the market day proved to be the most dramatic and the VIX rebounded to close over 31.
Will this be the time when the VIX finally breaks through the 30 mark and return to its historical average of the low 20’s? It seems that is entirely dependent on the situation in Europe, or should I say, the perception of the situation in Europe. Based on volume and open interest levels the options market is showing a lot of reason to believe the VIX will stay in a trading range between 30 and 50 through the next week when the near-term VIX options expire on October 19th.
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