Volatility Index (VIX)

[columbus]

Trade the market for price action.. and use VIX as additional info .. Though VIX is high.. but still there are ample of trading opportunities available in the mkt.

High VIX is not bad.. specailly for option seller, this brings in additional premium. Options get costlier because the Seller wants more money to cover the risk of high uncertainlty.
Generally we see only spikes in VIX chart towards the higher level and it comes back to normal range.. but that is not true in current market situation. The VIX (in US or in Indian mkt) is stuck in higher range. There is historical comparision available for this type of extreme bearish sentiment. US VIX was launched in 1993. so it does not cover the extreame of 1987 crash..

It is useful tool.. but not sufficient to take trading decision.

Happy Trading.

AW10,

You are 100% correct.VIX is an additional information,but not SOLE information on which your trading decisions are based.

Yes .high VIX is not bad,today when the VIX is as high as 66.75, but for SHORTERS it was a field day.

 

[columbus]

On average the VIX of this month and previous month stands at 58.
On daily basis VIX stands at 45 which is at a comfortable zone.

 

[goyal.rockey]

Even in U S mkts.....its on a rise

hello sir,
I am measuring volatility of index future of nifty and for that i require data for 10 years . so i visited on NSE site but i didn't got data so plz help me out by providing me the data of index future of nifty for last 10 yrs

 

[goyal.rockey]

Can anyone please explain - what is volatility index, how it is calculated and what is its unit?
When we say VIX is 30, what does it mean?

hello sir,
if you come to know about how to measure volatility of index then plz let me know. i am also in the queue of knowing how to measure. so plz inform me at my e-mail id
[email protected]
[email protected]

 

[columbus]

if you come to know about how to measure volatility of index then plz let me know. i am also in the queue of knowing how to measure. so plz inform me at

Calculation of VIX involves complex different methodology involving OPTIONS,
which you can find NSE's website.But there is a thumb rule,LOW vix means
BULLISH sentiment and high VIX means BEARISH sentiment.

I am measuring volatility of index future of nifty and for that i require data for 10 years . so i visited on NSE site but i didn't got data so plz help me out by providing me the data of index future of nifty for last 10 yrs

VIX in INDIA is recent addition ,since APRIL'08.Hence getting 10 years data
is ruled out.
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The average VIX now (49) is lesser than last 2 previous months 65 & 51 respectively.
It appears conditions are conducive for BULL market in short term.

 

[columbus]

The Volatility Index which was on decline for last 1 months to less
than 40 suddenly started moving up to 50 levels.As SATYAM issue is
appeared to be resolved for the time being ,can be expect the VIX
will cool down further or INDEX moves upwards?.

 

[columbus]

Does the Index move upwards when the VIX moves downwards ?

Have a look at the trend of Volatility Index and Sensex/Nifty for last
2 months and judge yourself.

 

[columbus]

VIX has cooled down substantially.On an average is 43.6 for this month
,one month back it was 44.2 and 2 months back it was 45.4.

When it cooled from 45.4 to 44.2 ,there was rally on upside, in the
market from 2600 to 3100 almost.NIFTY is/was almost stagnant for last
two month ,rather RANGE- BOUND between 2700~2900.

 

[columbus]

The nervousness in market is on rise though the average for
the month is at 44 and the day's VIX is 43.

Earlier it gave a deceptive picture because 3 or 4 months back
we had a abnormal value over 80.

 

[columbus]

The average VIX for last one month is 51 which was 39 one month ago.
The volatility has increased a lot these days.