How Meaningful are VIX’s Big Percentage Moves?

Occasionally there are eye-popping percentage moves in the CBOE’s VIX® index—these moves generate a lot of headlines .  As an antidote to the hype a few savvy VIX followers noted:  “Remember that $VIX is already a percentage.”   Jared Woodward from Condor Options “The $VIX was up 2.08% today, NOT 18.5%”  Mark Sebastian from Option Pit . I have to admit that my brain spun a bit on Jared’s percent of a percent …

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How Much Should We Expect the VIX to Move?

Every couple of months it seems like there’s an uptick in articles about the CBOE’s VIX Index being broken or manipulated.   Generally I expect the percentage moves in the VIX to be around a factor of 4 in the opposite direction of SPX (S&P 500).  But there are significant eccentricities in the VIX that I factor in, for example Fridays tend to be down days, …

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