Antwort Is VIX at 30 good? Weitere Antworten – What does a VIX of 30 mean
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25-30: This can indicate that there is a certain amount of market turbulence and volatility is increasing. 30 and over: This can indicate that the market is highly volatile and there may be some extreme swings soon.In general, VIX values of greater than 30 are considered to signal heightened volatility from increased uncertainty, risk and investor fear. VIX values below 20 generally correspond to more stable, less stressful periods in the markets.In general, a VIX reading below 20 suggests a perceived low-risk environment, while a reading above 20 is indicative of a period of higher volatility. The VIX is commonly used to measure investor confidence in the market.
Should I buy when VIX is high or low : When the VIX is low, volatility is low. When the VIX is high volatility is high, which is usually accompanied by market fear. Buying when the VIX is high and selling when it is low is a strategy, but one that needs to be considered against other factors and indicators.
What if VIX is above 30
VIX vs. S&P 500 Price
The price action of the S&P 500 and the VIX often shows inverse price action: when the S&P falls sharply, the VIX rises—and vice versa. As a rule of thumb, VIX values greater than 30 are generally linked to large volatility resulting from increased uncertainty, risk, and investors' fear.
What does a VIX of 32 mean : That is what we are seeing in the current context with volatility scaling up to 32 levels. It shows that markets can move steeply in either direction, but the more likely direction is down, unless the VIX tapers. This is an important gauge of risk for market traders and also for long term investors.
VIX is a measure of volatility in the market, which is why it is called the volatility index. In common parlance it is called the Fear Index since a higher level of VIX represents a high level of fear in the market and a low level of VIX indicates a high level of confidence in the markets.
Generally speaking, if the VIX index is at 12 or lower, the market is considered to be in a period of low volatility. On the other hand, abnormally high volatility is often seen as anything that is above 20.
What is considered a low VIX
content regarding future volatility.
One such example takes a VIX level below 12 to be “low,” a level above 20 to be “high,” and a level in between to be “normal.” Exhibit 2 illustrates the historical distribution of S&P 500 price changes over 30-day periods after a low VIX, after a high VIX, and after a normal VIX.It also cannot move to zero and historically has not gone below nine, which is distinct from equity prices. VIX futures and options should not be used as long-term, buy-and-hold investments.The price action of the S&P 500 and the VIX often shows inverse price action: when the S&P falls sharply, the VIX rises—and vice versa. As a rule of thumb, VIX values greater than 30 are generally linked to large volatility resulting from increased uncertainty, risk, and investors' fear.
Possible VIX Value Range
VIX (CBOE Volatility Index) can theoretically reach any value from zero to positive infinite. It can not be negative, but there it no theoretical limit on the upside. VIX can definitely go over 100.