VIX 03 (Mar 14 - Dec 23)

Re: VIX 03 (Mar 14 - Dec 16)

Postby winston » Tue Jul 26, 2016 7:15 am

What the market’s ‘fear gauge’ says about stocks today

by Ben Morris

The VIX is often called the market’s “fear gauge” because it measures the prices people are willing to pay for stock options…

When folks are worried about a crash, they buy put options to protect their portfolios against falling stocks… and put prices rise. The VIX rises with them. (The VIX can rise when folks go heavy on bullish bets by buying call options, too.)


The risk of a big drop in the coming months is smaller than it normally is.


Stocks can rise for years at a time while the VIX is below average. They can also rise when the VIX is above average.


A low VIX does not mean stocks are going to crash. There is no evidence to back up a statement like: “A low VIX means too much investor complacency and too little regard for risk, so a crash is around the corner.”


Source: Daily Wealth Trader

http://thecrux.com/what-the-markets-fea ... cks-today/
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Re: VIX 03 (Mar 14 - Dec 16)

Postby winston » Tue Sep 20, 2016 8:15 pm

What You Should Do Before This Week's Big News Event

By Jeff Clark

On Thursday, we received a signal from one of the most consistently profitable trading indicators...

The Volatility Index ("VIX") – the stock market's "fear gauge" – flashed a "buy."

This has happened five times over the past year. Each one marked at least a short-term bottom in the broad stock market – leading to gains of 2% to 5% in just a few days.

So traders should use any weakness heading into tomorrow's Federal Open Market Committee ("FOMC") announcement on interest rates as a chance to add exposure to the long side...

A VIX buy signal occurs when the index closes above its upper Bollinger Band... then comes down and closes inside the bands again.

For example, take a look at this one-year chart of the VIX...

Please Enable Images to See this

The blue arrows point to VIX buy signals over the past year.

Here's how the stock market behaved following each of those signals...

Please Enable Images to See this

The last time I wrote about the VIX buy signal was back in June, just before the "Brexit" vote.

In that essay, I said VIX buy signals are good at marking short-term bottoms for the stock market most of the time. But when you look at a longer time frame, the results are mixed.

Nimble traders could have locked in gains of 2% in two days if they bought the S&P 500 on the buy signal in mid-June... and then got out just before the Brexit vote.

The VIX generated another buy signal, though, right as stocks sold off after the Brexit vote.

It is rare to get two VIX buy signals so close together. That "double buy" marked the beginning of an intermediate-term rally, leading to gains of about 8% over the next six weeks.

Now, as we head into the important FOMC announcement tomorrow, the VIX has generated another double-buy signal.

There's no way to know how the market will react to the FOMC announcement. But with the market operating off a VIX double-buy signal, traders should look to buy on any weakness right now.

Source: Growth Stock Wire
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Re: VIX 03 (Mar 14 - Dec 16)

Postby winston » Wed Oct 05, 2016 2:44 pm

The Chart of the VIX Could Signal the Calm Before the Storm

By TIMOTHY COLLINS

http://realmoney.thestreet.com/articles ... yptr=yahoo
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Re: VIX 03 (Mar 14 - Dec 16)

Postby winston » Mon Jan 16, 2017 12:16 pm

Investors are bracing for a massive stock-market selloff

By Joseph Adinolfi

Demand for February VIX calls with lofty strike prices has increased in the past week

Investors are bracing for a bumpy ride in February.

If options traders are correct, stocks are in for a wild ride in February.

Demand for one-month call options tied to the CBOE Volatility Index, a popular gauge of stock-market volatility, has spiked in the past week, a sign that some are bracing for a sharp downturn following the inauguration of President-elect Donald Trump.

In that time, investors have purchased 250,000 VIX call options with a strike price at 21, and another 100,000 with the strike at 22, according to Brian Bier, head of sales and trading at Macro Risk Advisors, an options brokerage. The options cost roughly 49 cents per contract, Bier said.

By comparison, the CBOE Volatility Index VIX, -2.69% was at 11.16 in midday trading on Friday as the Dow Jones Industrial Average DJIA, -0.03% and the S&P 500 SPX, +0.18% were on track to record modest daily gains.

Source: Market Watch

http://www.marketwatch.com/story/invest ... 2017-01-13
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Re: VIX 03 (Mar 14 - Dec 16)

Postby winston » Mon Jan 16, 2017 12:16 pm

Investors are bracing for a massive stock-market selloff

By Joseph Adinolfi

Demand for February VIX calls with lofty strike prices has increased in the past week

Investors are bracing for a bumpy ride in February.

If options traders are correct, stocks are in for a wild ride in February.

Demand for one-month call options tied to the CBOE Volatility Index, a popular gauge of stock-market volatility, has spiked in the past week, a sign that some are bracing for a sharp downturn following the inauguration of President-elect Donald Trump.

In that time, investors have purchased 250,000 VIX call options with a strike price at 21, and another 100,000 with the strike at 22, according to Brian Bier, head of sales and trading at Macro Risk Advisors, an options brokerage. The options cost roughly 49 cents per contract, Bier said.

By comparison, the CBOE Volatility Index VIX, -2.69% was at 11.16 in midday trading on Friday as the Dow Jones Industrial Average DJIA, -0.03% and the S&P 500 SPX, +0.18% were on track to record modest daily gains.

Source: Market Watch

http://www.marketwatch.com/story/invest ... 2017-01-13
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Re: VIX 03 (Mar 14 - Dec 17)

Postby winston » Fri Jan 27, 2017 1:24 pm

Is Volatility Set to Turn? (VXX, XIV)

By Michael Foster

The CBOE Volatility Index, or VIX, has plummeted over 21 percent year to date and remains at its 52-week low amid growing market complacency that the Trump rally is here to stay.

After spiking at over 22 shortly before the election, the index has more than halved to 10.71 Wednesday morning, thanks to continued expectations that stocks are unlikely to see a major decline in the short term.

A lesser known measurement of volatility is telling a different story. The CBOE SKEW Index has increased by over 8 percent year to date, diverging from the VIX after following it lower since Donald Trump's presidential victory.


ETFs that track the VIX include ProShares Ultra VIX Short-Term Futures (UVXY), Credit Suisse 2x VIX Short Term ETN (TVIX), iPath S&P 500 VIX ST Futures ETN (VXX), VelocityShares Daily Inverse VIX ST ETN (XIV) and UBS ETRACS Daily Long-Short VIX ETN (XVIX).


Source: Investopedia

http://www.investopedia.com/news/volati ... z4Ww72TcCm
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Re: VIX 03 (Mar 14 - Dec 17)

Postby winston » Wed Feb 01, 2017 8:34 pm

How to Make a Killing... When Everyone Else Is Panicking

By SHAH GILANI

Source: Capital Wave Strategist

Source: Money Morning

https://moneymorning.com/active-premiums/vix-report/
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Re: VIX 03 (Mar 14 - Dec 17)

Postby winston » Sat Feb 18, 2017 12:57 pm

S&P And VIX Both Jump: Which One Will Blink First?

By Tyler Durden

Source: TTR

http://www.thetradingreport.com/2017/02 ... ink-first/
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Re: VIX 03 (Mar 14 - Dec 17)

Postby winston » Fri Mar 24, 2017 5:24 am

vested in VXX

The Key Things to Know When Trading Volatility with ETFs

by Eric Dutram

Products like VXX must roll contracts each month, time and time again, and into higher price contracts when the market is in contango.


By focusing on weekly futures contracts, which could help to cut down on contango a bit.

These include the REX VolMAXX Long VIX Weekly Futures Strategy ETF (VMAX) and the inverse counterpart, the REX VolMAXX Short VIX Weekly Futures Strategy ETF (VMIN).


Source: Zacks

http://finance.yahoo.com/news/ncaa-swee ... 03587.html
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Re: VIX 03 (Mar 14 - Dec 17)

Postby winston » Fri Mar 24, 2017 8:21 pm

vested in VXX

How to Make a Killing... When Everyone Else Is Panicking

By SHAH GILANI

Source: Money Morning

https://moneymorning.com/active-premiums/vix-report/
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