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Principles of Technical Analysis: The Volatility Index The volatility index is a contrary indicator Low readings on the Volatility Index indicate calm When there is little volatility, traders generally lack significant levels of fear During these periods, call buying -- a bet that the market will move higher -- typically outnumbers purchases of puts, or bets that the market will move lower
How You Can Profit From The Index Of Fear | InvestingAnswers The VIX is called 'the fear index' for a reason The higher the fears in the market, the more traders hedge their positions with options, driving up the price of the options, therefore the price of the VIX
Grab Volatility by the Horns and Profit with Straddles The VIX measures 30-day implied volatility for an array of S P 500 index options, so its breadth encompasses the broader market It is also regarded as a measure of investor fear
Recession-Proof Your Finances With These 10 Tips Gold is often seen as a hedge against inflation (which can be a byproduct of economic stimulus efforts during a recession) The CBOE Volatility Index (VIX), also known as the 'fear index,' can be an interesting hedge against wide swings in the markets
If the Market Craters, Heres My Plan | InvestingAnswers All of this has made the Volatility Index (VIX) -- a measure of volatility and thus, fear, in the markets -- triple since April Confidence is in short supply We'd all love to see a constant bull market (Wouldn't that make retirement easier?) But as investors, you have to take the good with the bad
CBOE -- Chicago Board Options Exchange -- Definition Example What is the Chicago Board Options Exchange (CBOE)? The Chicago Board Options Exchange (CBOE) is an exchange used for trading standardized options contracts, including stock options, LEAPS, interest rate options, foreign currency options, and index options
This Markets Best Defensive Stock Is Probably Not The One You Think The stock market is quickly closing in on new highs despite looking overvalued The S P 500's Shiller price-to-earnings (P E) ratio is now over 25 -- around 52% above its historical average of 16 5 Investors looking for clues in the CBOE Volatility Index (VIX) aren't getting much useful information Just this month, the index has ranged from an alarming high of 21 44 to a deceptively safe low
Standard Deviation Definition Example | InvestingAnswers How Does Standard Deviation Work? In investing, standard deviation is a useful tool because it helps investors look into security volatility and, in turn, predict performance trends For example, an index fund generally has low standard deviation if it’s properly diversified (since the fund is trying to replicate the benchmark index) If an investment has a lower standard deviation, that