Market volatility has a direct correlation with the cost of Option contracts. If volatility and uncertainty are high - Options will be more expensive. However, it is in uncertain times the most profit in the shortest time span can be made.
Blog description
- Rodney
- A place for friends to gather and view stock market charts, discuss technical analysis and market outlook. What is your Principal Asset? How can it be developed? Each and all should do their own due dilligence and homework before investing. And by no means should you use anything I say or show here as a sole basis to buy or sell securities as everything is for educational experience only.
Thursday, February 7, 2008
The VIX
The VIX is important because it measures the volatility of the market. Volatility is simlply confidence level: decision versus indecision, confidence versus confusion. The more confident the market is in its direction the lower the VIX will be; the less confident the higher the VIX will be.
Market volatility has a direct correlation with the cost of Option contracts. If volatility and uncertainty are high - Options will be more expensive. However, it is in uncertain times the most profit in the shortest time span can be made.
Market volatility has a direct correlation with the cost of Option contracts. If volatility and uncertainty are high - Options will be more expensive. However, it is in uncertain times the most profit in the shortest time span can be made.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment