The “Vol Trap” — How Long and How Low the VIX?

“We’ve been here before—with the VIX (The CBOE’s Volatility Index) settling in the 10% to 12% range while realized S&P 500 volatility hovers around 6% to 8%. Have you ever seen an ocean smooth and calm like a lake, with gentle waves lapping on the shore? It happens occasionally, and how wonderful it is. We can even let toddlers put their toes in the water. But a calm ocean rarely lulls us into thinking large waves cannot come crashing in again with little or no warning. Weather can change suddenly. So can the markets.”

Click here to read the full story on CboeVest.com.

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