investwithanedge.com You can, if you think you can! Vincent Peale www.youtube.com The VIX index has jumped 32% in the last two days, the highest 2-day jump since last year’s May 6th flash crash, due primarily to the turmoil in oil-rich Libya and the subsequent spike in the price of oil. The VIX closed at 22.13 Feb 23rd, reaching its highest level since Nov. 30. The VIX measures the cost of insuring against declines in the S&P 500 using options. The volatility, or “fear” index, had settled down considerably in the last 3 months, trading mostly between 16 and 18 and not above 17 since February 2nd. Between July 2nd and Feb 17th, The S&P 500 surged 28% and an options-market indicator known as “30-day realized volatility” fell below 10 on Feb 15th, a combination, according to Bloomberg, that has not seen since 1971. Price swings are a key driver of options prices.

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