|
PureBytes Links
Trading Reference Links
|
The QQV.X on dtn might be a useful complement to QQQ trading. The
description looks a lot like the VIX and VXN. Here is a quote from
http://www.amex.com/reference/pr_volQQQops_012201.stm
Monday, January 22, 2001
New York -- The American Stock Exchange® (Amex®), the pioneer in Exchange
Traded Funds and a leader in equity and index options, will begin
disseminating on Tuesday a new volatility index -- QQV -- based on options
on the Nasdaq-100 Tracking StockSM (QQQ).
"The QQV index is an indicator of investor sentiment about the future
volatility of the QQQ, the Nasdaq-100 Tracking Stock," said Salvatore F.
Sodano, chairman and chief executive officer of the Amex. "It provides, for
the first time, a snapshot of investors' expectations about future
volatility of the 'New Economy' stocks."
The Amex's QQQ options have achieved enormous popularity among investors as
evidenced by rapid growth in trading volume. During calendar year 2000, QQQ
options were the most actively traded option on the Amex. Further, among all
the options traded on the nation's five options exchanges, QQQ ranked as the
second most active option. Of the three US-based options trading on the
Nasdaq-100 Index, QQQ is, by a huge margin, the most actively traded option.
The QQV will measure the implied volatility of a hypothetical
constant-maturity one-month, at-the-money option and will be expressed as an
annualized standard deviation of returns. For example, a QQV of 50 suggests
that investors expect that over the next year QQQ could be as much as 50
percent above or 50 percent below its current level. QQV will be updated
every 15 seconds and thus conveys a timely measure of shifts in investor
expectations throughout the trading day.
Tabulation of QQV began on Sept. 27, 2000. Since then, based on QQQ index
levels at the market close, QQV has ranged from a low of 42.86 to a high of
75.40. On an intra-day basis, QQV has been as high as 82.41.
Background on QQQ and QQQ Options
The American Stock Exchange introduced trading in QQQ, the Nasdaq-100
Tracking Stock, in March 1999. QQQ achieved rapid growth in trading and
continues to break new volume records as one of the Amex's most successful
new products. The American Stock Exchange introduced options on QQQ the same
day QQQ began trading.
The American Stock Exchange®, a subsidiary of the National Association of
Securities Dealers, Inc. (NASD®), is the only primary exchange that offers
trading across a full range of equities, Index SharesSM, including
structured products and HOLDRSSM, and options. In addition to its role as a
national equities market, the Amex is the leader in Index Share listings
(DIAMONDS®,FORTUNE 500®Index Tracking Stock, FORTUNE e-50T Index Tracking
Stock, iSharesSM , MidCap SPDRsT, Nasdaq-100 Index Tracking StockSM, Select
Sector SPDRs®, and SPDRs® and streetTRACKSSM) and is the second-largest
options exchange in the U.S., trading options on broad-based and sector
indexes as well as domestic and foreign stocks. For more information, visit
www.amex.com.
The Nasdaq-100®, Nasdaq-100 Index®, Nasdaq-100 TrustSM, Nasdaq-100 SharesSM,
Nasdaq-100 Index Tracking StockSM, QQQSM and Nasdaq® are trade or service
marks of The Nasdaq Stock Market, Inc. (Nasdaq) and are licensed for use by
Licensee. Amex is solely responsible for calculating and disseminating the
Volatility Index and neither Nasdaq nor the National Association of
Securities Dealers, Inc. (NASD) shall have any liability arising out of the
calculation or dissemination of the Volatility Index. THE VOLATILITY INDEX
IS NOT ISSUED, ENDORSED, SOLD, OR PROMOTED BY NASDAQ OR THE NASD. NASDAQ,
THE AMEX AND THE NASD MAKE NO WARRANTIES AND BEAR NO LIABILITY WITH RESPECT
TO THE VOLATILITY INDEX.
Media Contacts:
Bob Rendine
The American Stock Exchange
(212) 306-1691
To unsubscribe from this group, send an email to:
realtraders-unsubscribe@xxxxxxxxxxx
|