October 27, 2008

VIX Premiums Low By Historical Standards

The concern is that these VIX premiums are too low by historical standards. In fact, based on the current level of actual volatility, the VIX should be trading somewhere north of 110 if real fear has entered the market, with a reading near 140 indicating panic.

Report:  Forbes.com

VIX Closes Above 80

VIX chart

October 24, 2008

VIX Hits Record High... 89.5

The CBOE Volatility Index (VIX) hit an intraday record high of 89.5 on Friday.

The VIX has averaged.26.74 this year compared with 17.54 in 2007. The volatility index closed above 50  for the first time on Oct. 6 and has not breached that level since.

VIX Record High

October 23, 2008

VIX Hits Record, Closes Lower

The VIX (CBOE Volatility Index) hit a record 79.43 during Thursday's trading before retreating to close at 67.80

Positive earnings from MSFT helped rally the broad market into the close.

VIX volatility

October 19, 2008

VIX Remains Near Record Levels

The CBOE Volatility Index (VIX) remains near historic highs, indicating that fear still permeates the stock market.  Despite the moderate market rebound, the VIX hit a record intraday high at 81.17 on Thursday and closed the week above 70.


October 13, 2008

VIX Retreats As Markets Surge

The VIX declined over 21% on Monday as stock markets around the world posted record gains.  With a reading of 54.99 the Volatility Index remains at historic highs.


October 11, 2008

VIX Could Hit 100


The CBOE Volatility Index (VIX) climbed 18 percent to a record 75.46 in afternoon trading on Friday. The VIX averaged 60.15 this week. This is nearly triple the 18 year average of 22.39. Prior to this week the VIX had never topped 50.

Michael McCarty, options strategist at Meridian Equity Partners Inc. in New York, writes in a research note to clients....

``A VIX over 100 is not unfathomable,'' ...``The implied volatility measures are lognormal in nature, which means a move from 20 to 40 is equivalent in magnitude to the recent move from 30 to 60 and would also be equivalent to another move for the VIX from 60 to 120.''

October 06, 2008

VIX Hits Record Topping 56

The CBOE Volatility Index (VIX) set a new record on Monday, topping 56 and closing at 52, surpassing the record close of 46.72 on set Sept. 29.

The previous record intraday high of 49.53 for the VIX  was set on Oct. 8, 1998.   The VIX has been traded since 1990.

Prior to last week the VIX had topped 40 during four prior periods:

1997---Asian financial crisis.
1998---Long-Term Capital Management's collapse.
2001---Attacks on U.S.
2002---the aftermath of WorldCom Inc.'s bankruptcy.Vix_chart

September 30, 2008

Vix Retreats From Record Levels

After skyrocketing 34 percent to a record 46.72 on Monday, the CBOE Volatility Index retreated to 39.39 on Tuesday.


September 29, 2008

VIX Hits Record High

The VIX (Chicago Board Options Exchange Volatility Index), also known as the "fear index", hit a record high of 46.47 intraday on Monday.  This level for the VIX eclipses the high set in 1998 when the VIX reached 45.74 amid the ‘Asian Contagion’ credit crisis.