topher2

Is the VIX Signaling an Inflection Point in the Markets?

The VIX is actually computed from the S&P 500 options, at least since 2003. It is a very viable tool, but must be looked at for exactly what it is. It includes a wide range in its calculation and is a volatility surface, not simply implied volatility. It also needs to be looked at in terms of historical volatility, which is currently at 95 percent, far higher than the VIX.