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  #1  
Old 10-22-2007, 09:15 PM
nastynatedub nastynatedub is offline
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Default 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.
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  #2  
Old 10-22-2007, 09:57 PM
SuperWhale SuperWhale is offline
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Default 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
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  #3  
Old 10-22-2007, 10:06 PM
kimchi kimchi is offline
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Default 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.
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  #4  
Old 10-22-2007, 10:30 PM
RarocASP RarocASP is offline
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Default 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.
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  #5  
Old 10-23-2007, 10:20 AM
CrushinFelt CrushinFelt is offline
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Default Re: Volatility Index

If it ever hits 15 again I would long the bejesus out of it.
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