No, the VIX is Not Broken

Hardly a month goes by without some pundit trumpeting that the VIX is broken. But before you worry too much, consider some of the non-obvious characteristics of the Cboe’s Fear Gauge. I often hear people in the finance industry saying that “The VIX® is broken”.  The specifics of what they say varies a lot, but the typical pronouncements go something like this: These boil down …

Read more

A glitchy week for the VIX

Last week didn’t inspire a lot of confidence in the CBOE’s Volatility index:  VIX A 0.6% SPX dip, gone two hours later triggers a 3.75% step up in the VIX that didn’t go away At the Thursday morning opening VIX glitches down 0.6 points and then jumps 1.3 points VIX  glitches down a point Friday morning for 15 minutes, and then recovers to within 0.03 …

Read more