Recent content by Dr John Summa

A Google search on VIX yields some unexpected pages: the name of a Czech rock band, a swim wear catalog and the Vienna Internet Exchange. Interesting stuff, but not quite what we had in mind. The CBOE's VIX is a popular market-timing indicator. Let's take a look at how VIX is constructed and how...

Most options traders - from beginner to expert - are familiar with the Black-Scholes model of option pricing developed by Fisher Black and Myron Scholes in 1973. To calculate what is deemed a fair market value for any option, the model incorporates a number of variables, which include time to...