VIX index explained - What do VIX values mean?

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Brent Osachoff , volatility trading strategies, VTS , VTS options, volatility trading , Volatility ETPs, options trading , investing , stock market, VIX, VXX, UVXY

[carlosandzs]

Wow. This was a simplistic yet monumental piece of information. Thank you sir.

[chairman]

Many thanks for the Light Bulb moment Brent . Been looking for an explanation like this for ages . ✌️

[flippatheshippa]

Thank you made this sound like a lot of sense it’s actually quite simple! Not as complex as people like to make it sound.

[mikestl]

Awesome info, thank you. The last question I want to get answered is how is the percentage for the Vix calculated. What data does it use to get to that number? I’m trying to understand those midday spikes and retracements on the vix too.

[ronaldvaughn]

Wow !! What A Great A- Z Easy Explanation Of The VIX Index, One Of You tubes Best Thanks A Million For Sharing This Informative Video, I Truly Gained Alot From It

[stevenguyen]

Thank for your video.
I only buy stock when vix one month below 23.
Wii sale all when vix about 25.
And be patient wait and wait.

[romanvereb]

Not gonna lie, I would totally invite Brent Osachoff to a couple dinner parties.

[VixCrush]

Excellent points. I will refer people to this when they ask..

[TraxxRelax]

I was wondering the following things after watching your video:
1. The one year forward movement projected by the vix is just the one sigma range, correct? So this would imply a certain probability of the vix ending up within that range and it would imply the according probabilities to end up in the two sigma, three sigma, etc. range. Is my understanding right ?
2. Since the S&P500 cannot drop more than 100% within one year this would limit the vix to 100. According to my understanding the vix is derived from the ratio of puts and calls on the S&P500 which have 30 days to expire. If this ratio became extreme the vix could see even higher values, right? I think what limits the vix naturally is that people do not spend arbitrarily much money on hedging their positions. What do you think?
Thank you for your great content !

[goodgoskee]

Thank you Brent
view you have!
Looks like you are participating in the absurdly overpriced Vancouver RE market

[jxg]

Thank you so much for the great video!

[kylehorne]

You define the VIX as the standard deviation of the forward one-year expected movement of the S&P 500 based on a strip of S&P 500 options. However, when I Google what the VIX is, it states it is a real-time market index representing the market's expectations for volatility over the coming 30 days. Can you explain why these definitions have different periods? Thank you!

[stevenford]

can I use the Vix index in correlation with the US30?

[saethman]

Is there a theoretical maximum for the VIX? Upward move no I guess, but downwards?

If I am not mistaken, then the VIX calculates from a monthly to an annualized. So if the monthly expectation is a 30% drop, that would give a VIX of 30*3.46=103.8, or an implied volatility of 103.8%. Is that correct?

[luisdemetrio]

Thanks for explaining the VIX. One point I did not get, if the VIX measures the 1 year or even 1 month forward and the SP500 was down 9% in December it means that the VIX was 7% in November because if the measure was taken in December you are predicting 7% in January, are my analysis correct? Thank you! Again, nice video!

[augustoliver]

That is a great view! What is the name of the city? Thanks!

[MegaJuniorJones]

Oh man. I want to follow and I’m trying but this is so much more complex than just regular securities options math.

[saravikberg]

Great video! Is it possible to create your own VIX index based on another Index? I am currently writing my bachelors thesis about implied volatilities and would like to create something comparable to the VIX index on Swedish Index OMXS30? Do you know if it is possible to do so by using implied volatilities from continuous calls and puts and using the average implied volatility of the two? Thank you for the help! :)

[oseN]

Hey, nice explanation! Maybe you have any sources or materials about this calculation?

[HaouasLeDocteur]

Why the square root for the calculation of forward expectations?