Article The Vix is Nothing New

T2W Bot

Staff member
Dec 19, 2004
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#1
The author looks at the Vix indicator and its use in predicting the market turn of 2002.
In the last 2 weeks, I have seen the ?VIX? on both CNBC and Bloomberg TV talked about as if it was something new. Well, for all you OTA Grads, you know we have been using it for years. For the rest, let?s review and see how this "new" indicator can help us.
Let’s look back at the turn in the markets in 2002.
The VIX is provided by the Chicago Board of Options Exchange (CBOE) and, basically, measures the volatility in the options markets, which of course, are directly related to the underlying security in the stock market. VIX (generally, you can see this with the VIX symbol, but your platform may require a prefix or suffix such as $vix, /vix, vix.x, .vix or even ^vix. Each has it own requirements. Pretty much, whatever you use to see the Standard & Poor’s 500 Index , VIX will follow that format).
As volume, velocity and directional change start to go up in intensity, we measure this as...
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charliechan

Well-known member
Jun 18, 2005
1,009
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#2
our vix expert forgets to mention that one can actually trade vix contracts in their own right! a lot of portfolio managers use vix contracts to offset volatility exposure on their index positions. you could too!