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→Volatility Index (VIX)
*[https://www.investopedia.com/articles/optioninvestor/09/implied-volatility-contrary-indicator.asp#:~:text=Key%20Takeaways,usually%20accompanied%20by%20market%20fear. The Vix Index - Investopedia] - The VIX is used as a contrary market indicator, how institutional sentiment can be measured by VIX, and why an understanding of the VIX tends to favor long and short puts.
*[https://www.investopedia.com/articles/optioninvestor/09/implied-volatility-contrary-indicator.asp#:~:text=Key%20Takeaways,usually%20accompanied%20by%20market%20fear. The Vix Index - Investopedia] - The VIX is used as a contrary market indicator, how institutional sentiment can be measured by VIX, and why an understanding of the VIX tends to favor long and short puts.
'''KEY TAKEAWAYs'''
'''Key takeaways about the Volatility Index (VIX):'''
*The Volatility Index, or VIX, measures volatility in the stock market.
*The Volatility Index, or VIX, measures volatility in the stock market.
*When the VIX is low, volatility is low. When the VIX is high volatility is high, which is usually accompanied by market fear.
*When the VIX is low, volatility is low. When the VIX is high volatility is high, which is usually accompanied by market fear.
*Buying when the VIX is high and selling when it is low is a strategy, but one that needs to be considered against other factors and indicators.
*Buying when the VIX is high and selling when it is low is a strategy, but one that needs to be considered against other factors and indicators.
Tools and tips:
*[http://finance.yahoo.com/echarts?s=^VIX+Interactive#{%22allowChartStacking%22:true} VIX Chart]
*[http://finance.yahoo.com/echarts?s=^VIX+Interactive#{%22allowChartStacking%22:true} VIX Chart]