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Strategies & Market Trends : Tech Stock Options -- Ignore unavailable to you. Want to Upgrade?


To: ViperChick Secret Agent 006.9 who wrote (51053)8/28/1998 2:18:00 PM
From: SE  Read Replies (1) | Respond to of 58727
 
Steve,

(sorry Lisa, posted to you....oh well...)

I know next to nothing about the VIX, but have picked up a line here or there...like this from Plonk.

exchange2000.com

...and if I recall a reading of 20 or so happens near tops....but I don't recall very well....

.....compare a vix chart longer term to the DOW and SPX and you will begin to develop a feel. I don't know what value the VIX is in predicting moves, but I think perhaps I should look further into it. Anyone else out there have any strong opinions on the VIX?

-Scott



To: ViperChick Secret Agent 006.9 who wrote (51053)8/28/1998 2:20:00 PM
From: dennis michael patterson  Read Replies (2) | Respond to of 58727
 
FAVORS: Just got an email flash. He sees a "powerful rally" coming in the next few days. Should scare the shorts. He says then the big one. Looks like it goes down the week after Labor Day.



To: ViperChick Secret Agent 006.9 who wrote (51053)8/28/1998 2:30:00 PM
From: VS  Read Replies (1) | Respond to of 58727
 
Hi Lisa. Well, i'm not the expert here, but i'll try to chip in..
I believe the VIX is a measure of implied volatility on the OEX options. I think its calculated by averaging the implied vols. on four near the money OEX calls and puts.
Most people use it to measure sentiment, and use it as a contrary indicator.
Hope that helps.
Vince