How low can you go?

The Chicago Board Options Exchange’s  (CBOE) Volatility Index measures the “implied volatility of the S&P 500 options.” Some have dubbed it the fear gauge, and you can look it up by the ticker symbol $VIX. For perspective, the $VIX traded over 40 in the immediate aftermath of September 11, 2001. Juxtaposed with the price of the index at over 80 points. While this may be true, as of this writing the $VIX is at 15.42, which is confusing to me. Of course, today’s comments from the Fed about holding still on interest rates doesn’t escape me. Yet, in wake of Brexit, and most recent news reports on north America’s oversupply of crude, I’m still surprised.



Leave a Comment