What determines the value of the VIX?

FYI that paper is not Arithmetic, there is some serious Calculus in there! There are more greeks in that paper than there are in Greece :D

Most people (Warren Buffet included) don't know or care about boring and useless Calculus! We are not designing rockets here! Just following trends which are easy to spot in charts and then going along for the ride.

Of course one will not be right all the time, but even if get 75% of the trends I will be happy :)

And then to manage risk there is the VIX! This is where this little buddy comes in to help us :p Buy the VIX and when the market goes down, while others are crying, you are laughing :D And when the market goes up you are making sweet sweet money :D

It's not rocket science!
 
Dude, there is zero calculus in there. No integrals or derivatives, just some simple series calculations. Don't call difficult math calculus if it isn't.
 
Quote from auspiv:

Dude, there is zero calculus in there. No integrals or derivatives, just some simple series calculations. Don't call difficult math calculus if it isn't.
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Well if it isn't Calculus it is some other branch of Higher Mathematics. The point is that it is not arithmetic, there are weird letters and symbols in there. Arithmetic is just numbers. I bet Warren Buffet could not understand it either and he is the greatest trader in the world!

I don't mean to offend anyone here on this forum. This is a great community here and I am glad to be a part of it. I hope to learn a lot from all of you.

Its just that I feel that the key to sucess in trading is to manage risk and the VIX is the best way to do it. It is a great insurance policy. Thank God for the VIX!!! :D
 
Quote from Wolfgang1756:


I don't mean to offend anyone here on this forum. This is a great community here and I am glad to be a part of it. I hope to learn a lot from all of you.
More...
Excellent, start learning then... The VIX calculation is based on simple arithmetic and offers a fantastic learning opportunity.
Its just that I feel that the key to sucess in trading is to manage risk and the VIX is the best way to do it. It is a great insurance policy. Thank God for the VIX!!! :D
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Key to success in trading is not being lazy.
 
The VXX moves always less than the VIX in EITHER direction. So when the VIX was up 25% in one day last week the VXX was up only 10% or so.

So today yes the VXX will be down less than the VIX sure. But that is not a problem. If you want to follow the exteme movements of the spot VIX then buy more VXX :D

VXX = sweet sweet money :D (when market is down)

When market is up like today, sure the VXX will be down, but then the Spiders will be climbing all over!!! :D

Spiders + VXX = Sweet sweet money :D :D :D
 
The VIX is calculated from certain option prices.... and is a measure of sentiment.... not always a good timing indicator.

I always think of VIX as "relative price of puts vs. relative price of calls".
 
Take the VIX number e.g. 48 divide that by 16 and that gives the potential move of the stocks 3 points, this is the relevant information.
 
Right now at 12:38pm Eastern Time, the VXX is 48.24 up 0.04% and SPY is 104.23 up 0.66%.

Both are up :D

Just like I have been saying all along, i.e. SPY + VXX = Sweet, sweet money :D :D :D
 
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