Quote:
Originally Posted by 25psi_Elise_Killer
VIX index is an index which gauges volatility. Volatility is a main component of option pricing. So, the higher the volatility, the higher the option price and vice versa.
Better definition here:
VIX - CBOE Volatility Index
If you want to make $$ directly off the VIX, there are options and futures available for you to play with. If you deal in large size, best to be in the OTC market since the listed markets are not very liquid...
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i'm kinda chuckling here... ok thanks. I guess kidding doesnt come across well online at times.
As I said, this is all I do all day. If I truly thought ok "I want to make $$ directly off the VIX" I would be doing it, since I dont get paid unless I make investors money. Point blank: do u know anyone who makes $$ directly off the volatility? U must know more hedge fund managers/private traders than I do.