I have always maintained that VIX is not directly usable for timing trades,
however it never-the-less contains valuable information. A declining VIX means
that investors/traders are confident and prone to accept more risk. A rising VIX
means that investors/traders are becoming more cautious and willing to accept
less risk. I use both VIX and credit spreads (corporate and high yield) to
monitor the degree to which investors/traders are accepting more risk or taking
less. Generally, I want to see more risk taking to confirm and support the lower
risk premiums which tend to support a bull market, especially speculative bull
markets.
----- Original Message -----
Sent: Friday, September 16, 2005 10:53
AM
Subject: Re: [RT] Vix
I am a little confused here. Has anyone
ever made any money trading the VIX? In the 70s and 80s the VIX ranged
between 11 and 18. The extremes at the time. Then the extremes
changed and one was looking in the 30s and 40s. Still no one that I know
of ever made a dime trading the VIX.
A lot of people have made a lot of money trading
the indexes with the vix at 11, 18, 25 and so on. Does anyone know how
the VIX is calculated? If they did, I doubt that they would rely upon it
as much as they seem to.
Ira.
----- Original Message -----
Sent: Friday, September 16, 2005 8:17
AM
Subject: [RT] Vix
vix has been bouncing the outside of the
channel to the other - some thing different about his options
expiration?
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