Videos

Understanding the VIX – The Fear Index in Stocks

The VIX is known as the fear index because it is based on the amount of puts that are purchased.

Why?
-The more puts that are purchased on the SP500, the higher the VIX
-When puts are high that means people are buying protection
-They think the market is going down

High v. Low VIX
-High VIX versus low VIX is relative
-It depends whether you’re looking at historical or implied relativity, a high VIX can’t necessarily be determined by its numerical value
-The implied VIX is the state that you are currently in
-Remember: when the VIX is high, it’s time to buy; when the VIX is low, look out below
-The VIX works opposite of the market (but it’s not always 1:1)
-When the VIX is high, stock prices go down because fear impacts selling to the negative side
-When the VIX is low, stock prices start to increase because there is less fear, which means stocks will eventually tumble
-It shows you how much protection people are buying with the puts

#understandingvix #stockfear #fearindex #vixindex #marketvix

Posted at: https://tradersfly.com/blog/vix-the-fear-index-in-stocks/

???? GET MY FREEBIES

Freebies

???? SUBMIT A VOICE QUESTION

Question – Hungry for Returns

???? START HERE: FOR NEW TRADERS

Start Here – for New Traders

???? START HERE: OPTION TRADERS

Start Here – Option Traders

???? MY CHARTING TOOLS + BROKERS
https://tradersfly.com/go/tools/

???? MY COMPUTER EQUIPMENT

Resources: Computer Gear

???? GET THE NEWSLETTER

YouTube Newsletter Signup

???? SEE OUR MEMBERSHIP PLANS
https://tradersfly.com/go/members/

???? STOCK TRADING COURSES

See All Our Trading Courses

???? STOCK TRADING BOOKS:

Our Stock Trading Books

⚽ GET PRIVATE COACHING

Coaching for Stock Traders

???? WEBSITES:

Home Version 2.0

Home Page

Homepage 2.0

Home

Home

???? SOCIAL MEDIA:
https://tradersfly.com/go/twitter/
https://tradersfly.com/go/facebook/

⚡ SUBSCRIBE TO OUR YOUTUBE CHANNEL
https://tradersfly.com/go/sub/

???? MY YOUTUBE CHANNELS:
TradersFly: https://backstageincome.com/go/youtube-tradersfly/
BackstageIncome: https://backstageincome.com/go/youtube-bsi/
MyLittleNestEgg: https://mylittlenestegg.com/go/youtube/

???? ABOUT TRADERSFLY
TradersFly is a place where I enjoy sharing my knowledge and experience about the stock market, trading, and investing.

Stock trading can be a brutal industry, especially if you are new. Watch my free educational training videos to avoid making big mistakes and just to continue to get better.

Stock trading and investing is a long journey – it doesn’t happen overnight. If you are interested to share some insight or contribute to the community we’d love to have you subscribe and join us!

Articles You May Like

BTC058: Bitcoin Real Estate Loans w/ Mauricio Bartolomeo and Adam Reeds
457 TIP. Why The Dollar Keeps Rising w/ Jeffrey Snider
Stocks to Buy on Lumber Crash