One of our (Shannon and Casey) favorite indicators, VIX is the ticker symbol for the Chicago Board Options Exchange’s Volatility Index. Consistent with its name, the VIX is a measure of volatility, or how fast prices change. Sometimes called the fear gauge, the VIX “is a calculation designed to produce a measure of constant, 30-day expected volatility of the U.S. stock market, derived from real-time, mid-quote prices of S&P 500®Index call and put options.” The VIX mean is 20; important trading levels are 1-4 standard deviation levels from the mean, or 28, 36, 44 and 52.
#gracestone #cboevix