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A few people were surprised that there was an ‘oil vix’ that follows volatility on USO and WTI (OVX and OIV respectively).
What will surprise even more people is that there are MANY MANY more VIX indexes. There are VIX indexes on almost every major ETF.
Today’s in Option Pit’s Group Mentoring, I found myself talking about VXXLE (the VIX of XLE).
There are many more though, VXD (the VIX of the DJIA), EVZ (the VIX of the EUR/USD), and VXTLT are 3 VIX indexes that I have looked at in the past.
I have also spent time with VXAPL, which is the VIX of AAPL (there are VIX’s for AAPL, AMAZON, GOOGLE, GS, and IBM).
People often ask me if they need crazy vol analytics to make trading decisions. One of the nice things about having all of these VIX indexes is that I have analytics on many of the most popular names just by pulling up a regular old stock chart.
Using these indexes, especially for newer volatility traders can save you a lot of money early on, while learning to trade VIX products (incidentally, the VVIX is great for both VIX and VXX trading).
VIX Traffic light is Yellow, but teetering on Red.
Peak oil vol might be over, the question now is are we heading for a VIX collapse or a slow burn.
Your Only Option,
Mark
PS – The oil dislocation has created a real opportunity for VIX traders. We trade trade volatility because it never matters the instrument that is going crazy, we can make money on it. Join me…