Volatility For Dummies
It’s a gorgeous summer day in Los Angeles and I apparently have nothing better to do than to think of new ways of entertaining my stainless steel rats – shame on me. I am not complaining however as I am a market megalomaniac on a mission – hey, that has a nice ring to it! After Volar’s volatility post I perused many articles and papers regarding various measures of volatility now offered by the CBOE (and others) and soon realized that there may be much confusion on the subject. Do you fully understand how each volatility index works and how they differ from each other?
I didn’t think so! Which is a situation we ought to remedy once and for all. Due to some ancient genetic mutation common in my germanic tribe I happen to be obsessed with clarity and order. Thus I felt strangely compelled to produce a post that puts various measures into their respective context and more importantly assesses their real value. After all we are all about edge here at Evil Speculator. So, today I have a special treat in store for you which called for an appropriate cover page:
That’s right – the ultimate reference on what makes the VIX, VXN, VXD, VXO, SKEW, VXV, etc. tick – special digital edition for intrepid disciples of the evil lair:
Charts and commentary below for anyone donning a secret decoder ring. If you are interested in becoming a Gold member then don’t waste time and sign up here. And if you are a Zero subscriber it includes access to all Gold posts, so you actually get double the bang for your buck.
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This entry was posted on Sunday, August 21st, 2011 at 6:53 pm. Both comments and pings are currently closed.