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To: pater tenebrarum who wrote (114281)	7/24/2001 7:07:03 PM
From: Crimson Ghost	Read Replies (1) \| Respond to of 436258

Heinz: Thanks for your VIX comments! At current interest rates about what VIX reading would constitute the fear equivalent of last spring's 40 number and the 60 level hit the bottom of the 1998 collapse.

To: pater tenebrarum who wrote (114281)	7/24/2001 10:35:18 PM
From: s.pecunius	Read Replies (1) \| Respond to of 436258

" however, note that the level of ST interest rates also flows into volatility premiums...lower rates mean lower premiums, as present value calculations of options include the level of risk free rates to expiration as one of their calculation components. " are you sure? rates and vola are INDEPENDENT variables in the option pricing models to determine the premiums, e.g. if the vola is 30 and the rates are changing, the premiums are changing, too, but the implied vola(->vix) from this new premium is still 30. (btw declining rates imply increasing put premiums.) Generally, I love your posts, but I don't understand your statement here.