VIX Catches VXN

haha · 08-01-2007, 10:51 AM

Volatility is going nuts since the market came off last week. Especially odd to me is that the measure of S&P volatility, VIX, is more of less equal to NAZ volatility. It has often been no more than half. Also, a look at percentage off 52 week highs shows tech holding up very well compared to finance, consumer product, etc.

My puts are still well out of the money, but have going up mightily-enough to make a good cushion for equity losses.

There must be a lot of hedging going on in preference to selling, because really the market isn't off all that much.

Ha

brewer12345 · 08-01-2007, 11:03 AM

Getting danged expensive to buy calls in the midst of the wreckage, I can tell you that much. Even sold some puts the other day, which I don't normally do. The premium on the puts was so ridiculously fat I actually felt compensated for the risk.

dex · 08-01-2007, 12:25 PM

MarketGauge by DataView, LLC

08-01-2007, 10:51 AM	#1
haha Give me a museum and I'll fill it. (Picasso) Give me a forum ... Join Date: Apr 2003 Location: Seattle Posts: 8,814	VIX Catches VXN Volatility is going nuts since the market came off last week. Especially odd to me is that the measure of S&P volatility, VIX, is more of less equal to NAZ volatility. It has often been no more than half. Also, a look at percentage off 52 week highs shows tech holding up very well compared to finance, consumer product, etc. My puts are still well out of the money, but have going up mightily-enough to make a good cushion for equity losses. There must be a lot of hedging going on in preference to selling, because really the market isn't off all that much. Ha __________________ "Show 'em just enough to win the turkey."- Former KY Governor Bert Combs

08-01-2007, 11:03 AM	#2
brewer12345 Give me a museum and I'll fill it. (Picasso) Give me a forum ... Join Date: Mar 2003 Posts: 9,362	Getting danged expensive to buy calls in the midst of the wreckage, I can tell you that much. Even sold some puts the other day, which I don't normally do. The premium on the puts was so ridiculously fat I actually felt compensated for the risk. __________________ “When you realize that you are one of the rare few who observe moral principles in their relationships with others, there is a temptation to sink into amorality, not out of conviction or pleasure but simply to avoid further pain, because there is no greater suffering than being an angel in hell, whereas a devil feels at home wherever he goes.” – Martin Page, How I Became Stupid

08-01-2007, 12:25 PM	#3
dex Thinks s/he gets paid by the post Join Date: Oct 2003 Posts: 3,177	MarketGauge by DataView, LLC __________________ Sometimes death is not as tragic as not knowing how to live. This man knew how to live--and how to make others glad they were living. - Jack Benny at Nat King Cole's funeral

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