Should the VIX over-correct and rise back towards the highs hit in January, investors could be looking at something more nasty.” (Updates with Friday’s Vix Trading in eighth paragraph.) For this reason, the VIX is commonly referred to as the "fear gauge" or "fear index." VIX futures have been trading on the CBOE since 2004, and take into account the current market prices for all out-of-the-money call and put options for the front month So while an oil future bought today might say, “I want the right to buy oil for $40 in a month,” and thus be worth $2 when oil is trading at $42 on settlement day, a VIX futures contract is pegged against a certain value for VIX. To put it another way Today is an excellent day to fade market volatility. Normally, ahead of a nonfarm payroll report, where the Fed has put itself in play (which they have done), the high volatility and fear peaks on Wednesday before it fizzles out on Friday. I like buying but big speculators are currently net short 114,088 contracts in VIX futures, just under the record level set earlier this month, according to U.S. Commodity Futures Trading Commission positioning data through August 16. After trading in a range for VIX has broken through the 20 day moving average in a material and does not recommend or advise on the suitability of any trade or investment, nor provide legal, tax or any other investment advice. .
Surprisingly, India VIX -- which is a measure of volatility-- is trading at its lowest level since December 2014. A low VIX suggests that there is a very high bullish consensus among traders and investors. Well, this is a slightly worrying factor. The CBOE Vix index, a gauge of implied S&P 500 volatility, is roughly 13 — well off its long-term average of 20. But erudite market watchers tend to fret when quiet times are accompanied by extremes. The latest data from the Commodity Futures Trading So while an oil future bought today might say “I want the right to buy oil for $40 in a month,” and thus be worth $2 when oil is trading at $42 on settlement day, a VIX futures contract is pegged against a certain value for VIX. To put it another way And while that move up was fairly large over a one or two trading day period, we have since experienced a historic decline in the VIX. Brexit, like many other events in recent history, turned out to be another case of bad news is good news for the market .