tag:blogger.com,1999:blog-11027528911364475.post9183405571173128406..comments2024-02-18T21:10:05.205-08:00Comments on EconomPic: Don't Read too Much into the VIXJakehttp://www.blogger.com/profile/07946497592651234440noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-11027528911364475.post-43247570540550053652009-04-10T20:32:00.000-07:002009-04-10T20:32:00.000-07:00i agree that a decrease in the VIX decreases the c...i agree that a decrease in the VIX decreases the cost of insurance against volatility, but it also decreases the cost against a decline (put options become cheaper). however, it doesn't necessarily mean the market will decline in a less volatile way, it means that the market has already been less volatile and/or expectations of volatility are lower...Jakehttps://www.blogger.com/profile/07946497592651234440noreply@blogger.comtag:blogger.com,1999:blog-11027528911364475.post-76026781023149238282009-04-10T14:30:00.000-07:002009-04-10T14:30:00.000-07:00VIX measures the Cost of insurance against volatil...VIX measures the Cost of insurance against volatility. The more volatile, the greater the cost.<BR/><BR/>Just because VIX is declining doesn't mean the market won't decline further; it just means the market will move (decline) in a less volatile way.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-11027528911364475.post-21663382084957660912009-04-09T05:15:00.000-07:002009-04-09T05:15:00.000-07:00If you overlay Gold prices on top of that, I bet y...If you overlay Gold prices on top of that, I bet you'll get another well-correlated graph.Nitric Oxidenoreply@blogger.com