www.guerillastocktrading.com If you follow my real time trading on Twitter, or Facebook, then you know that this was exactly how I predicted a market pullback at the end of April and why I bought VXZ and made a quick 8% profit in 3 days. In the video below, watch as I perform technical analysis on Barclays Bank PLC Exchnage Traded VIX ETN (VXZ) in 3 different time frames weekly, daily, and hourly. I believe that VXZ is in a very weak downtrend which tells us that the bulls have the upper-hand on the S&P 500. There is a very good chance that the S&P 500 can rally next week. Have a great weekend of stock market research and happy father’s day to my fellow Dads.
If I go to my etrade account I see that vix is currently priced at $30. Can I buy 50 “shares” of vix like I would buy a stock, or is it more complicated?
The VIX is up 5.85 today from a level of 24.76 = current level of 30.60
However, the Nov. 25 call is only up 1.75 to 3.75.
Why is the call not equal to “the in the money”? which would be 5.60.
www.stockmarketfunding.com “Understanding How to Trade Volatility” 4 Stages to Market Tops When to Buy Bear Funds VIX S&P 500 Index Chart ^VIX CBOE Volatility Index. Free Stock Market Online Trading Education Video Course Lesson Free Trial Signup http Video Alert Signup www.stockmarketfunding.com Trading Community (Free to Join) www.DailyStockCharts.com Follow us on Twitter www.twitter.com Follow us on Facebook: www.facebook.com
Lots of ways to estimate volatility. In this map, I parse out implied volatility (forward looking) and deterministic (constant) and focus on stochastic volatility: volatility that changes over time, either via (conditional) recent volatility and/or random shocks
Within stochastic volatility, moving average is the simplest approach. It simply calculates volatility as the unweighted standard deviation of a window of X trading days. Here I show the three “flavors:” population variance (volatility = SQRT[variance]), sample, and simple
