VIX LIES? Why Market Protection Costs Are So High Today!
Why is the market paying top dollar for protection when it is barely moving? Today, major indexes like the S&P 500 show an incredibly narrow intraday range, the lowest in weeks, yet the 30-day Cboe Volatility Index, or VIX, remains elevated near 20. This perplexing disconnect suggests investors are heavily hedging despite a quiet tape. As one expert points out, the VIX is primarily a read on hedging demand for longer-term options, not immediate market fear, which is reflected in the much lower 1-day volatility index. This means the market is currently overpaying for insurance if the quiet trend continues, but an expansion in trading range could suddenly justify these high hedging costs. Uncover how these market forces will impact your portfolio; make sure to subscribe to our channel for essential insights.
Tags/Hashtags: #dow #nasdaq #vix #volatility #investing #hedging #options #dow #nasdaq #walmart #cboe
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