Every Monday Vix Gaps Higher

M

myminitrading

Has anyone ever noticed this? several monday back the markets opened higher and the Vix gapped open over 5%, why is this? why does it always open higher?
 
Quote from myminitrading:

Has anyone ever noticed this? several monday back the markets opened higher and the Vix gapped open over 5%, why is this? why does it always open higher?
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The VIX is calculated off calendar days but the market trades on business days...
There is a lower VIX on Friday as there is no trading on the weekend, so lower average vol.
 
VIX = index option decay, which is based on calendar days. That's why short option positions love three-day weekends and holidays... free money! :>)
 
Quote from austinp:

VIX = index option decay, which is based on calendar days. That's why short option positions love three-day weekends and holidays... free money! :>)
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Free money... Until there is a terrorist attack.
 
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