Recently a reader asked me this question about the VIX trading beneath 15. I was actually preparing to study the issue for tonight’s blog post when I happened upon today’s Trading Markets post by Larry Connors.
I’ll let Connors’s post serve as a jumping off point. You can read it here: Is the VIX Too Low?
Over the next few days I’ll dig a little deeper than Connors has so that we can see what happens in the short and intermediate terms when VIX trades beneath a certain level.
In the meantime, if you are interested in reading more VIX related posts, I have housed all of them in the Volatility archive. There is some good stuff there, so give it a look.