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Old 03-01-2017, 02:07 PM   #4
barn32
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Join Date: Jun 2008
Posts: 2,285
Quote:
Originally Posted by Parkview_Pirate View Post
One thing I still don't understand about volatility is that the upward moves in the market aren't reflected nearly as much (and sometimes never) by a higher value in the VIX. Today is a good example - with the S&P up over 30 points, the VIX has stayed near 13. If the S&P had dropped 30 points, the VIX would be up near 18 or 20...
I don't know about the "18 or 20" part, but the VIX goes up mostly in down markets. If it was a gradual 30 point move the VIX would move more gradually, but if there was some bad news somewhere the VIX could really spike and possibly higher than 18 or 20.

However, the last couple of weeks saw some exceptions. From around the 13th to yesterday the DOW was up around 500 points and the VIX went from 11 to 13, which was very perplexing to me. VIX is a measure of fear more or less, that's why it goes down in up markets.

Volatility is also confusing because of all the different components associated with it. Indexes, futures, ETNs, ETFs, etc.

Some of those include:

VIX (index)
VXX
/VX
VVIX
UVXY
XIV
SVXY
TVIX
ZIV

Not to mention the VIX futures which trade weekly in the near month and monthly there after.

And there are probably a few that I left out.
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