Often referred to as the fear index, the CBOE VIX measures 30-day implied volatility in the S&P 500 based on options prices.
When IV Rank is above 50%, options traders typically look for opportunities to sell volatility. This is especially true when the VIX is trading at elevated levels. The long-term average in the VIX is roughly 19. So when the VIX starts trending into the 20s and 30s, options traders usually...
This language is so thoroughly imbued in contemporary Western thought that Orwell’s Ministry of Truth seems to be nothing less than the prediction of what the Hasbara Ministry (and all of its more or less formal or official off-shoots around the world) does all in a day’s work. While ...
A p-value is one way of summarising the stability of your statistic of interest, under ‘null variations’. It does not itself measure interestingness. Overview/disclaimer:Can you do (semi-formal) statistics without assuming, even ‘temporarily’ that a model is ‘true’? Can estimation be don...
Understand the Business: What does the company do? How does it make money? Evaluate the Management: Look at their track record, past performance, and strategies for the company. Assess Competitive Advantage: Where does the company stand in the competitive landscape, does the company have a compe...
The VIX uses the prices of a basket of put and calls options on the S&P 500 to measure the implied volatility. Historical evidence has shown that when the VIX rises, the S&P 500 typically drops, and vice-versa. The absolute value of the index isn’t as crucial as its general trend. ...
But this contribution neither implies that the orange juice puzzle is fully resolved, nor does it suggest that the FCOJ market is efficient. Two phenomena are worth noting. First, empirical evidence shows that the price variation in winter accounts for only about half of the total return variatio...
Meanwhile, the IAI, which also has proven to be a leading indicator to the VIX, has shown some divergence. During the time period mentioned above, despite some concerns about the market, the overall IAI actually moved lower. The Bottom Line Sentiment plays a big role in decision making for ...
The VIX, also known as the fear index, is driven byoption prices.A crucial tool for traders, the VIX indicates the expected volatility of the S&P 500 index. High VIX levels can signal heightened worries, potentially a signal of a market bottom. A low VIX can suggest market complacency and...
Contrarian Indicators:Monitor sentiment indicators like theput/call ratioand the VIX. Extreme readings can suggest a potential reversal. Analysts also publish their sentiment for securities, and you can rely on these to better understand future outlooks. ...