Thursday, November 20, 2008

Markets Rallying (for now), But VIX Still Rising

It is unusual to see the markets bounce off of a bottom and the VIX still continue to climb, but that is exactly what has happened over the past few minutes, with the VIX up to 80.35. This divergence usually resolves in a bearish fashion.

Interestingly, the VIX December 100 calls that I referenced in the previous post have pulled back to a bid/ask of 0.75 - 1.00, with 774 contracts now traded.


Anonymous said...

The cash Vix index closed at a new 2008 high of 80.86 and the Dec 100 calls closed at 1.10 - 1.25 on a volume of 1573 contracts. Friday November twenty-first should be an interesting trading day as it is options expiration day and the major stock market indexes closed at 2008 lows today.

DISCLAIMER: "VIX®" is a trademark of Chicago Board Options Exchange, Incorporated. Chicago Board Options Exchange, Incorporated is not affiliated with this website or this website's owner's or operators. CBOE assumes no responsibility for the accuracy or completeness or any other aspect of any content posted on this website by its operator or any third party. All content on this site is provided for informational and entertainment purposes only and is not intended as advice to buy or sell any securities. Stocks are difficult to trade; options are even harder. When it comes to VIX derivatives, don't fall into the trap of thinking that just because you can ride a horse, you can ride an alligator. Please do your own homework and accept full responsibility for any investment decisions you make. No content on this site can be used for commercial purposes without the prior written permission of the author. Copyright © 2007-2023 Bill Luby. All rights reserved.
Web Analytics