VIX and VIX

Bill from VIX and More chimes in with this response to my earlier post. “In my opinion, you can’t make a credible case that the VIX has jumped the shark until there is a blog out there that is dedicated entirely to that silly little nanosubject…”. LMAO.

Actually there’s a distinction here that needs to be made. There is always room for intelligent statistical work on the VIX, like Bill does day in and day out. Quantifiable Edges and bzb trader throw some in as well.

What has to go is the kind of lazy analyis we hear hourly from observers that often have zero clue what the VIX even measures, how a future or option in there gets priced, et. al. . It’s simply the “Fear Index” to them, with all sorts of random magical levels that must mean something because the market turned on them sometime in the past.

Beyond market clues, the best value from the VIX imho is the general trading signals we can glean. A cheap VIX means switching long term stock winners to calls, and/or tightening targets and stops in shorter term trades make sense.

OK, enough about the VIX, time for a moratorium again on discussing it. 

The “options” VIX I mean, not the VIX Swimwear shown here.