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Pastimes : VIX/VXN -- Ignore unavailable to you. Want to Upgrade?


To: oldirtybastard who wrote (1)3/12/2002 11:52:14 AM
From: Steve Lee  Read Replies (1) | Respond to of 7
 
Unless you know the asks in the mind of every potential options seller, you cannot calculate, or even guess, how much money it would take to achieve a particular VIX value.

Even if you opened enough interest to increase premiums, all the options you had to sell in the meantime at lower premiums would keep the VIX low.

And you are right that by definition volatility cannot stay at the extremes. But VIX is not a measure of volatility.