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Volatility spikes up during the day
- Thread starter a529612
- Start date
It's not necessarily a tell that this or that will happen...but with tomorrow's CPI numbers and Wednesday's housing numbers the VIX is likely reacting.
If you are referring to the VIX there is nothing extraordinary about today's action. The way the VIX is measured it is always lower than it should be on Fridays and then looks like it moves up on Mondays. This is due to the simple fact that option market makers are running Monday's theoreticals by the end of the day on Friday. Today's move was a little larger than normal because it was a down day and there is important economic data coming up.Quote from a529612:
What kind of "tell" is this if it spikes up 11% like today? Is it telling you some pullback is just around the corner?
What I find a lot more interesting is the overall level of the VIX through this large move up we have had over the last couple months. The SPX has only had about a 20 point range for 2 weeks and the VIX has not dropped. That can mean the traders "in the know" think that this market is in for some more measurable volatility, or it could mean that there is too much fear out there and the market can continue to climb the proverbial wall of worry. I would bet on the first explanation, but that's just me.
say what you want. think what you want.. i called it and it will happen. i'll see you at the bottom in june-july.
VOLATILITY between today and 9/11/07
http://www.elitetrader.com/vb/showthread.php?s=&threadid=94287
You have seen the beginning and the end has come.
Cheers
VOLATILITY between today and 9/11/07
http://www.elitetrader.com/vb/showthread.php?s=&threadid=94287
You have seen the beginning and the end has come.
Cheers
Well, I have a question. On your thread you said that you are buying September 13 VIX calls. This may seem like a strange question, but how exactly are you buying Sept. options?Quote from truetraderone:
say what you want. think what you want.. i called it and it will happen. i'll see you at the bottom in june-july.
VOLATILITY between today and 9/11/07
http://www.elitetrader.com/vb/showthread.php?s=&threadid=94287
You have seen the beginning and the end has come.
Cheers