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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.
Traders can assess volatility by using the Chicago Board Options Exchange Volatility Index (VIX), which indicates the level of bullish or bearish sentiment Wednesday, June 19, 2024 Our Top Picks Best Money-Making Tips
The VIX measures 30-day implied volatility for an array of S&P 500 index options, so its breadth encompasses the broader market. It is also regarded as a measure of investor fear. Regardless, straddle traders need to monitor the VIX.
When the VIX moves lower, the S&P 500 generally travels higher. The VIX is called 'the fear index' for a reason. The higher the fears in the market, the more traders hedge their positions with options, driving up the price of the options, therefore the price of the VIX. Now that you understand what the VIX is, how can an investor put it to work?
The CBOE is the 2nd largest options market in the world behind the Korea Stock Exchange (KSE). The exchange volume at CBOE easily exceeds 306 million contracts per year. In 2003, the CBOE traded 31% of the contracts listed on American exchanges, accounting for over 283 million options contracts, over 15.5 million transactions, and over $148 ...
The January option stops trading at the end of business on the third Friday in January. It expires the third Saturday in January. On the Monday following expiration, the March option begins to trade, because now February is the 'current month' and March is the 'next month.'. Now there are options available for February, March, April and July.
Standard deviation is a measure of how much an investment's returns can vary from its average return. It is a measure of volatility and, in turn, risk. Finding out the standard deviation as a measure of risk can show investors the historical volatility of investments. The higher the standard deviation, the more volatile or risky an investment ...
What Is Beta. Beta is a measure of how fast a stock rises and falls in relation to the broader stock market. For example, a stock with a beta of 3.0 will rise (or fall) three times as fast as the market. A stock with a beta of just 0.25 will move up or down more slowly, even when the rest of the stock market is making a bold move in either ...
Vladimir Lenin. Volatility Index (VIX) Volume. Voodoo Accounting. Voodoo Economics. Voting Shares. Vulture Fund. InvestingAnswers' glossary of financial definitions and business terms that begin with the letter "V".
During a recession, you don't want to be bogged down by obligations. 7. Downsize. As part of your effort to whip your finances into sustainable shape, downsizing can be a great strategy. If you can make do with less stuff, live with a smaller home, or get by with one less car, you can improve your finances.