Sorry!! The article you are trying to read is not available now.
Thank you very much;
you're only a step away from
downloading your reports.

Two Ways: Volatility Takes a Holiday


Strengthen your portfolio in good times and bad.


VIX Blues

The Chicago Board Options Exchange Volatility Index, better known as the VIX, is hovering at its lowest levels since September 12, the last day of trading before Lehman Brothers filed for bankruptcy. According to Bloomberg, the VIX has fallen 13% this week, signaling a significant decline in options prices. It has declined 64% since it exploded to 80.6 in November - the highest level in its nearly 20-year history.

For more on the VIX, see Professor Adam Warner's Volatility Decline More Truth Than Illusion.

From the Bull Pen: Be careful making assumptions with a "low" VIX ahead of a long holiday weekend. Continue to look at sectors showing strength for upside exposure and use the common stock. Monsanto (MON) may have to play catchup with other agriculture stocks; a sell stop can be set below $88.

From the Bear Cave: Bears can keep an eye on Con Ed (ED) crawling up the slippery slope back to $36-$36.50 resistance, and consider testing the downside if and when it gets there.

Quick Check Around the World

Asian trading closed with the Hang Seng -0.39%, India -1.69%, Nikkei 0.59%, Shanghai -0.94% and Taiwan 0.72%.

Glancing towards Europe, we see the CAC 0.30%, DAX 0.45%, FTSE -0.34%

As of 8:10 AM EST, S&P Futures are trading +5 to 911.00, and Nasdaq futures are +2 to 1398.00.

A Look at Commodities

Over in commodities, crude oil is trading +0.56 to 60.66 while gold is +4.90 at 931.60 this morning. Silver is +0.160 to 14.28 and copper -0.20 to 206.75.

The dollar index is -0.2750 to 81.7800.

On the Radar


10:30 Crude Inventories
02:00 FOMC Minutes

Click here for the full trading radar.

Hump day! Two more days until Fat Friday! Good luck!

Actionable ideas, instant analysis. Real-time from bell to bell.
Minyanville's Buzz & Banter - 14 day FREE trial

< Previous
  • 1
Next >
No positions in stocks mentioned.

The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.

Featured Videos