Seeking Alpha
, QVM Group (150 clicks)
Profile| Send Message|
( followers)  

The VIX is approximately 23. What does that mean in terms of price range expectations over the next 30 days for SPY (a proxy for the S&P 500)?

The blue parabolic curve in this chart shows the price range that is expected within an 80% probability for SPY based on the current VIX level. For contrast, the green parabolic curve shows the price range that would be predicted with 80% probability based on six months of historical volatility.

The gold line is the 200-day average. The four red lines mark 5%, 10%, 15% and 20% levels below the trailing one-year high.

Click to enlarge

Disclosure: We do not currently hold SPY in most managed accounts as of the publication date of this article.

Disclaimer: This article provides opinions and information, but does not contain recommendations or personal investment advice to any specific person for any particular purpose. Do your own research or obtain suitable personal advice. You are responsible for your own investment decisions. This article is presented subject to our full disclaimer found on our site available here.

Source: What Does VIX Suggest Is the Near-Term Price Range for SPY?