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Strategies & Market Trends : Wings-FPT

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To: Didi who started this subject10/18/2000 1:47:28 AM
From: Didi   of 124
 
VIX & Trend--"McMillan On Options" by Lawrence G. McMillan.

Selected highlights.

>>>For broad-based index options, extremely low implied volatility normally precedes a market explosion. This explosion is often on the downside, but not always. Sometimes the market takes off to the upside instead.

An extremely high implied volatility reading, especially if it occurs as a spike, is generally a sign that a short-term bottom is at hand for the broad market.

As is customary during steady rise, implied volatility remained low,...

Often, the timing of the market move, whether up or down, can be refined by noting when volatility begins to increase.<<<
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