Volatility: “I Don’t Like Monday’s Either”
- Posted by Adam Warner
- on October 12th, 2009
Actually a stat like the VIX does like Monday’s. Just not today as at hovers near 52 week lows.
VXX though? That wild and crazy ETN that track’s VIX futures could care not a whit about such mundane things as the day of the week. And VXX has hit all-time lows today.
Now “all-time” is not as impressive when you have only existed for 8.5 month’s, and 6.5 of those month’s has seen volatility quite heavy.
But still. It’s a good proxy for the dimished future expectations. Now VIX futures still carry premiums to “cash”. November for example is still near 26. But they’re trending lower at a faster pace than the VIX itself as the reality sets in that last year was pretty much an aberation, and a VIX in the 20′s is fairly normal.
The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.
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Adam Warner is the author of Options Volatility Trading: Strategies for Profiting from Market Swings, released in October 2009 from McGraw Hill. (More)
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