By Matt Benjamin The VIX is very near Goldilocks territory.
If that statement sounds cryptic, it’s not. In fact, it’s very straightforward. It’s also a very good thing for investors, and short-term traders in particular.
The VIX is the Chicago Board Options Exchange Volatility Index. It measures market volatility by looking at put and call options on the broad market of S&P 500 stocks.
If the VIX is high, the market will see big swings, either up or down. That was the case in mid-March, when the VIX peaked above 80. On March 16, the S&P 500 fell nearly 12%, the third-biggest daily loss since 1926. …read more
