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Alberto,
VIX is a CBOE measurement of the OEX volatility. It reflects the consensus
estimate of future volatility on the OEX based on the number of "at the
money" quotes of OEX index options.
Some do use the VIX as a directional indicator of the market. I don't find
it that helpful.
I prefer to use the TICK. It measures the broader market in terms of the
number of stocks on the NYSE that have traded (that day) on an uptick minus
the number of stocks traded on a downtick. So if the tick is quoted at
+345 that means at that instant there are 345 more stocks trading on an
uptick than on a downtick (on the NYSE).
The range typically runs from +/- 1500 on real wild days, much less so on
less volatile days. For the day trader, the TICK can give you a clue where
the DJIA will be moving in the next 60-90 seconds -- with the TICK leading
the DJIA.
George
At 07:24 PM 1/20/98 -0800, Alberto Torchio wrote:
>Dear Listmembers,
>
>It may be a stupid question, but what is VIX? Is it a tradable
>instrument?
>
>Alberto Torchio
> Torino, Italy
>
>
>
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