Live preview mode. Wire is not yet published.

Options markets flashed another bearish signal last week when the price of the VIX, the benchmark volatility index traded at a premium to its own futures, a...

Tom McKay

Livewire Markets

Options markets flashed another bearish signal last week when the price of the VIX, the benchmark volatility index traded at a premium to its own futures, a sign demand is increasing for protection against stock losses. The Index has jumped 17 percent since Dec. 9 to 15.76 and twice closed above its one- and two-month futures in the past three days, data compiled by Bloomberg show. The index that tracks Standard & Poor's 500 Index contract prices rose 14 percent last week as American shares lost 1.6 percent. This will be one to watch as There are two relationships which have held well over the past thirty years or so 1) When volatility increases, stocks do not go up, and 2) When US stocks go down, Australian stocks do not go up. (VIEW LINK)


1 topic

Tom McKay
Managing Director and Co-Founder
Livewire Markets

Tom McKay is the Co-Founder and Managing Director of Livewire. Tom's passionate about democratising access to high quality investment ideas and insights, so all investors can make more informed and successful investment decisions.

I would like to

Only to be used for sending genuine email enquiries to the Contributor. Livewire Markets Pty Ltd reserves its right to take any legal or other appropriate action in relation to misuse of this service.

Personal Information Collection Statement
Your personal information will be passed to the Contributor and/or its authorised service provider to assist the Contributor to contact you about your investment enquiry. They are required not to use your information for any other purpose. Our privacy policy explains how we store personal information and how you may access, correct or complain about the handling of personal information.

Comments

Sign In or Join Free to comment