"VIX" Posts
Market Breadth Primer: VIX Phenomenon 2017 Edition
By Lawrence
I wrote about the Volatility Index (VIX) several years ago explaining why it behaves the way it is. I also presented the idea that understanding the players in the trading game is more important than focusing just on the technical details like the Greeks in option trading. And here we are, in year 2017 where […]
Market Breadth Primer: The VIX Phenomenon
By Lawrence
Majority of option traders who understand options tend to focus on the mathematics of VIX while the chart traders who trade S&P 500 Index futures tend to focus on the chart patterns and confirmation signals from VIX. Who is right? Who understand VIX better? Here is a short piece on the VIX Phenomenon that no […]
WTF Chart of the Day: VIX Smash
By Lawrence
You thought S&P going higher and higher like this is new? Think again. This is what happened back in late 2002 to 2005. Every push higher in VIX is promptly answered by heavy selling of the VIX derivatives which in turn leading to arb activities that start the chain reaction forcing the S&P to go […]
The VIX Bearish Bias Play
By Lawrence
The bearish property of VIX that no one talks about. If you need background information about the Volatility Index (VIX) please read The VIX Bullish Play. It has more background information about VIX that I do not want to repeat here. I am going to focus on the bearish trading setup here. First, the net […]
Bankable ETF Strategy: VIX Rotation
By Lawrence
I am going to present a different kind of swing trading strategy this time using the CBOE Volatility Index VIX to trade S&P 500 ETF (SPY) and Dow 30 ETF (DIA). CBOE VIX is a measure of the implied volatility of the index options on the S&P 500 cash index. Traders give it the nickname […]
WTF Chart of the Day: VIX Is Settling At Its New Home
A quick note on VIX why it has moved towards 12. Anyone who has read my article on the real underlying behaviour driving VIX level should know that as S&P500 moves towards 1900, VIX is bounded to move towards 12. That’s the way it is. The fact that VIX drifts into 12-13 area is not […]