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Pastimes : The Naked Truth - Big Kahuna a Myth -- Ignore unavailable to you. Want to Upgrade?


To: MythMan who wrote (67557)10/8/1999 6:55:00 PM
From: pater tenebrarum  Respond to of 86076
 
the VIX is calculated using two calls and puts, the at-the-money and just out-of-the-money of the front and following month. only OEX options are eligible for the calculation of the VIX. essentially it expresses implied volatility premiums.
usually, when the VIX approaches 30, premiums on puts are very high, indicating fear. 20 conversely indicates complacency.