As the Market Volatility Index (VIX) looks to be awakening from its slumber, wouldn’t it be great if there was an exchange traded fund (ETF) to track its activity?
The VIX, which measures risk based on S&P 500 options, jumped from 15 to almost 19 in a mere three trading days. Also, it’s up more than 52% from its 52-week low, according to Matt Hougan for Index Universe. Remember that when the VIX value is greater than 30, it means high volatility, and a value less than 20 indicates a calmer market. Currently, the VIX is at its highest level since August of 2004! If you think 19 is high though, remember the VIX was at 42 at the height of the dot.com bust.
While we’re at it, let’s also get ETFs to track the VXN, which tracks the Nasdaq options, and the VXD, which tracks the Dow Jones industrial average options. Keep your fingers crossed.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.