Add training workflow, datasets, and runbook
This commit is contained in:
@@ -0,0 +1,23 @@
|
||||
CBOE Volatility Index
|
||||
®
|
||||
Often traders look to the implied volatility of the market as a whole for
|
||||
guidance on the IV of individual stocks. Traders use the Chicago Board
|
||||
Options Exchange (CBOE) Volatility Index® , or VIX® , as an indicator of
|
||||
overall market volatility.
|
||||
When people talk about the market, they are talking about a broad-based
|
||||
index covering many stocks on many diverse industries. Usually, they are
|
||||
referring to the S&P 500. Just as the IV of a stock may offer insight about
|
||||
investors’ feelings about that stock’s future volatility, the volatility of
|
||||
options on the S&P 500—SPX options—may tell something about the
|
||||
expected volatility of the market as a whole.
|
||||
VIX is an index published by the Chicago Board Options Exchange that
|
||||
measures the IV of a hypothetical 30-day option on the SPX. A 30-day
|
||||
option on the SPX only truly exists once a month—30 days before
|
||||
expiration. CBOE computes a hypothetical 30-day option by means of a
|
||||
weighted average of the two nearest-term months.
|
||||
When the S&P 500 rises or falls, it is common to see individual stocks
|
||||
rise and fall in sympathy with the index. Most stocks have some degree of
|
||||
market risk. When there is a perception of higher risk in the market as a
|
||||
whole, there can consequently be a perception of higher risk in individual
|
||||
stocks. The rise or fall of the IV of SPX can translate into the IV of
|
||||
individual stocks rising or falling.
|
||||
Reference in New Issue
Block a user