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Strategies & Market Trends : DAYTRADING Fundamentals -- Ignore unavailable to you. Want to Upgrade?


To: Herc who wrote (5699)11/25/1999 7:04:00 PM
From: WryBoy  Respond to of 18137
 
VIX is a real-time weighted average of the implied volatility of the eight near-term
OEX calls and put that are currently trading just at or near their strike prices.

A mouthful, as is the subject of options in general.

Options get "cheap" (low implied volatility) due to flat trading or a steady rise in prices.
The belief (by many) is that implied volatility generally returns to historical norms and thus
can be predictor of future breakouts or downturns.

See: cboe.com

WB