VIX - Volatility Index

vindikation · #1 10-15-2005, 09:18 PM

Do you check out the Volatility Index (VIX) to get an overall feel of 30 day market futures before purchasing a stock?

Sniper · #2 10-15-2005, 09:29 PM

VIX is a representation of volatility in the market... constructed using the implied volatility of certain index options... it has nothing to do with futures.

vindikation · #3 10-15-2005, 09:37 PM

Sorry, I meant a feel of the market over the next (future) 30 days (not futures themselves). I apologize, I'm still learning all of these new terms.

So do you look at the VIX for any kind of input in a decision on when to buy a stock?

Sniper · #4 10-15-2005, 11:39 PM

[ QUOTE ]
I meant a feel of the market over the next (future) 30 days

[/ QUOTE ]

That would be called a crystal ball [img]/images/graemlins/wink.gif[/img]

[ QUOTE ]
So do you look at the VIX for any kind of input in a decision on when to buy a stock?

[/ QUOTE ]

Some people use VIX as a market fear indicator...

As in, the 2+2 Fear index went thru the roof this week, things can only get better from here!

The VIX is a single indicator, nice to know where it is, not highy useful, unless you've designed a system around it [img]/images/graemlins/smile.gif[/img]

CD56 · #5 10-16-2005, 08:36 PM

IIRC the VIX has a fairly consistent inverse relationship with the SP500, has anyone ever attempted a system for trading the SP500 using the VIX?