Volatility: Using History as a Guide
Any trader who's visited the world of options is no stranger to the CBOE Volatility Index (VIX). It gives a face to the fear in the markets and gives a name to one of the most critical components of the pricing of our contracts. Three strikes out, weekly -- monthly -- whatever strike you're trading you should always be aware of the volatility of your contracts and the impact it will have on its prices.
Exactly how the index is created isn't a Hot Topic that can be covered in a quick daily read, but rather a topic that deserves the full day of analysis OptionsProfits will be giving it on December 3. However, if you're looking at the swing analysis that will hit prior to this weekend, you can't ignore the daily Squeeze. The Squeeze is a key indicator that any follower of our articles is familiar with and using history as our guide, we're still in for higher prices in stock indexes. At this point you may be asking yourself how long we'll ride the dead horse of a market rally, but I learned long ago that trading the news will leave you broke wondering how global events unfolded as they did.
On Saturday, December 3, the CBOE, Option Pit and OptionsProfits are hosting a full-day course dedicated to mastering strategies for trading the VIX. CLICK HERE FOR INVITE AND TO REGISTER.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV