VIX Index Analysis Revealing Its Fatal Flaws

The VIX cannot be trusted

Why the VIX Index may be Flawed (Street View) In my last post, Financial Markets Outlook for 2017, I covered this topic, but only in broad terms. In this post, I’m making my Case, with a deep dive into the VIX Index and Risk Analysis, in order to “convince” you why the VIX cannot be trusted anymore and you need…

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SPX and VIX Options extended hours coming

SPX and VIX Options

SPX and VIX Options extended hours by CBOE   Great news for investors from Europe, Asia and other parts of the world.   CBOE announced extended hours trading time for SPX and VIX Options. These Options start trading from 2 am Eastern US time. Check image below for details.   More details will be available…

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An SPX trade taking advantage of the VIX

Learn to trade Options with Hari Swaminathan from OptionTiger.com

An SPX trade taking advantage of the VIX   Over the past few days, the SPX seems to have stabilized after hitting a double bottom in January. The VIX has fallen to about 19, after climbing to about 23 in the last week.   Given that we expect stability, the VIX can be expected to fall…

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Understanding the VIX – Free Course

  Free Vix Course – Understanding the VIX, aka Fear Index As a member of the OptionTiger community, I’d like to offer you the VIX mini-course for FREE.  Its a 1-hour long course and explains the impact of VIX levels on Option Prices, and rapidly changing sets of Trade strategies, for these conditions. Critically, what happens during a Crisis to Option…

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Using the VIX Index as a market forecasting tool

Learn to trade Options with the best - Hari Swaminathan from OptionTiger.com

The VIX Index, also known as the “Fear Index”, is one of the most watched indices in the markets. The VIX Index is a measure of Volatility in the markets. You’d be forgiven if you believe that the VIX should go up when the markets are volatile, on the upside or the downside. But this is not the case. The VIX actually goes up when the markets go down, and goes down when the markets go up.

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WoW !! VIX Index at 16 exactly for one day

Learn to trade Options with Hari Swaminathan from OptionTiger.com

The market saw one of the worst sell-offs of 2012 yesterday. As we mentioned in our previous video, the VIX had fallen to about 17 by Wednesday, just at Ben Bernanke delivered the FOMC meeting press conference. (If you bought a Long Straddle at this level of the VIX, you did great – please see our previous video blog). Sure enough, the Fed didn’t give the market the fix it wanted – and coupled with some bad economic data on Thursday, the markets fell off a cliff. Adding to the woes, 16 global banks were downgraded by Moody’s, including the largest U.S. banks.

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The VIX index post-Greek elections

Learn to trade Options with Hari Swaminathan from OptionTiger.com

The Vix or the “Fear” Index dropped over 10% today. Of course, this is not surprising given that the much-watched Greek elections over the weekend were what the markets wanted. The markets did indeed dodge a bullet ! However, all is not well with Spain’s 10-year bonds spiking to over 7.1% today, and that has the European and U.S. markets worried. We are entering a low-VIX environment and this can produce a few great strategies over the next 6 to 12 weeks. In this video, we discuss some of these Options strategies.

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