CVOL—the Other Volatility Kid on the Block

UPDATE CVOL was shutdown by UBS in May of 2016.  It never achieved enough assets for it to be a viable competitor     CVOL’s  stated goal is to “produce returns that are correlated to the CBOE Volatility Index (the “VIX Index”). ”   So far no one has figured out a way to offer a direct investment in the VIX Index, so volatility traders must …

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FAQ on VIX, the “Fear Index”

Why do they call the VIX Index the “Fear Index” or “Fear Gauge” Because the VIX almost always goes up when the market goes down. The scarier the decline the higher the VIX tends to go. In the worst part of the 2008/2009 bear market it went as high as 80. In strong bull markets it historically bounces between 10 and 15. How can I …

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