How the VVIX can be Used as a Barometer in Trading

How the VVIX can be Used as a Barometer in Trading

How the VVIX can be Used as a Barometer in Trading Most traders are familiar with the VIX, which measures the volatility of the S & P 500.  The VIX was introduced in 1993 by the Chicago Board of Options Exchange.  The index measures the 30-day forward...
Trading Curb – Market Circuit Breakers

Trading Curb – Market Circuit Breakers

If you remember Black Monday on October 19, 1987, you recall the market declined 22.68% in one day. This was the largest one-day percentage decline in the DJIA. It took until early 1989 for the market to recover to its previous high set in August 1987. In the...
Contango and Backwardation

Contango and Backwardation

Have you ever heard someone say “The VIX futures are in contango”? Or, maybe you have heard someone say “The VIXfutures are in backwardation”. Today we will be discussing a little bit about contango and backwardation. This will give you some...
How the U.S. Election Will Effect the Markets

How the U.S. Election Will Effect the Markets

We all know the U.S. Presidential Election is on Tuesday, November 8th, just a few days away. We've seen how the S&P 500 has had nine straight days of losses, which hasn't happened since December 1980. The S&P 500 Let's take a look at the S&P 500 chart:...
The VIX: What Is It, and What Can It Mean for Your Options Trading?

The VIX: What Is It, and What Can It Mean for Your Options Trading?

What is the VIX? "The VIX Index is an up-to-the-minute market estimate of implied (expected) volatility that is calculated by using the midpoint of real-time S&P 500 Index (SPX) option bid/ask quotes. More specifically, the VIX Index is intended to provide an...