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-   -   Volatility Index (http://archives1.twoplustwo.com/showthread.php?t=528936)

nastynatedub 10-22-2007 09:15 PM

Volatility Index
 
I recently just came across the CBOE Volatility Index http://finance.yahoo.com/q?s=%5Evix , in which it is designed to gauge investor sentiment as well as expected short-term Volatility in the markets. you can trade the index through the use of options and futures which carry enormous risks. However, I was wondering, Are you able to trade the index like you would a fund, buying and selling w/o the huge risks that come when playing options and futures. Anyone have anymore knowledge about this index and experience with trading it;advice is much appreciated. thank you.

SuperWhale 10-22-2007 09:57 PM

Re: Volatility Index
 
There is no etf that "contains" the VIX, as it is called. It is based on the implied volatility in SPX (S and P 500). There are futures and options on it however.

http://www.cboe.com/micro/vix/introduction.aspx has more information

kimchi 10-22-2007 10:06 PM

Re: Volatility Index
 

looking at the last 17 or so years' of data for this market was interesting. It seems to trade like a cockroach climbs as wall (who said that?).

What strategy would you use to trade this market? There are lots of violent swings there.

RarocASP 10-22-2007 10:30 PM

Re: Volatility Index
 
[ QUOTE ]

looking at the last 17 or so years' of data for this market was interesting. It seems to trade like a cockroach climbs as wall (who said that?).

What strategy would you use to trade this market? There are lots of violent swings there.

[/ QUOTE ]

Could use it as a hedge against a long equity portfolio.

CrushinFelt 10-23-2007 10:20 AM

Re: Volatility Index
 
If it ever hits 15 again I would long the bejesus out of it.


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