$VIX Long-Term Chart vs $SPX
Here’s a 22 year chart of the VIX Volatility Index. I used VIX yesterday to make a decision about a short trade, but I have reasonable expectations (hence, Dec 2014 puts and not anything more dangerous, ha).
Yes, there are sharp spikes, but longer term, it bottoms out in rounded vallies.
Below is a chart of S&P 500 Index for the same period.
Overlay of the two charts:
Kat,
So you’re betting against Bernanke?
jog on
duc
“Against Bernanke” is much too grand a motivation for this small trade. Technically, I have a case, and gaps are made to be closed. It’s not like there haven’t been any dips and corrections during this run.