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Strategies & Market Trends : Systems, Strategies and Resources for Trading Futures -- Ignore unavailable to you. Want to Upgrade?


To: manohar kanuri who wrote (6793)10/19/1998 5:03:00 PM
From: Patrick Slevin  Read Replies (1) | Respond to of 44573
 
<Can anyone tell me offhand if the VIX can be 20, or under, in a bear market?>

Absolutely. VIX is just a function of the volatility of 8 options on the OEX.

Mathematically, by the by, a VIX reading of 50, say, is an indication that Options Traders are assigning a 67% probability to the OEX moving 50% in a one year time frame.....up, or, down.

Makes no difference to VIX. Fun thing to know, is it not?