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Strategies & Market Trends : Waiting for the big Kahuna -- Ignore unavailable to you. Want to Upgrade?

To: Hawkmoon who wrote (35986)	1/4/1999 1:31:00 AM
From: Amots	Respond to of 94695

Ron. from: cboe.com << CBOE Volatility Index - VIX One measure of the level of implied volatility in index options is CBOE's Volatility Index, known by its ticker symbol VIX. VIX, introduced by CBOE in 1993, measures the volatility of the U.S. equity market. It provides investors with up-to-the-minute market estimates of expected volatility by using real-time OEX index option bid/ask quotes. This index is calculated by taking a weighted average of the implied volatilities of eight OEX calls and puts. The chosen options have an average time to maturity of 30 days. Consequently, the VIX is intended to indicate the implied volatility of 30-day index options. It is used by some traders as a general indication of index option implied volatility. Implied volatility levels in index options change frequently and substantially. Consequently, when trading short-term index options, traders should forecast the index level, the time period, and the volatility level. Traders of long-term index options should also include a forecast of interest rates. (The volatility discussions above are excerpts from the book Trading Index Options by James B. Bittman. This book is available through our online bookstore.) >> Regards Amots

To: Hawkmoon who wrote (35986)	1/4/1999 6:51:00 AM
From: William H Huebl	Respond to of 94695

Ron, Thanks for asking... I see Amot provided the answer. VIX gives all sorts of information and corroborates other indicators. You can download it with your stocks - most of the major feeds have it. I get the TC2000 download. Right now VIX is slightly bearish (has bearish market implications) short term... but should work out of it in a day or two. Mid range ( couple of weeks ) it is bullish and longer term (months) it still is bearish reflecting the VGY situation. Will be an interesting year and thanks for asking! Bill