VIX

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All right, everybody, that music means we are back.

First, we got DocuSign, ticker symbol Docu, D-O-C-U.

Then we've got Eli Lilly and Company, ticker symbol Lilly, L-L-Y-U.

Even got SVIX sneaking in there.

We don't see SVIX, the inverse VIX product, sneaking into our scans too often.

Oftentimes they'll compress for a while and then something will happen.

When you look at the S&P 500 VIX, that cash VIX, it gets near those lows and it grinds and then it explodes higher.

So just keep an eye on that.

The 14-day average true range for gold, $109.

30-year local high, 10-year local high, 2-year local high.

VIX up 8, gold down 1.

BBV up 7, nice.

Narrow down 2, copper down 4, back under our line.

S&P up 1%, the Dow up 1.1% as we're kicking off the show, the NASDAQ up about 1.15%.

And our old pal VIX Cash, after going on a journey Since our last show, listeners, it dropped to about, didn't quite break the 14 handle, but it seemed like it sure wanted to.

We got down to about 14 and a third before we started getting a little bit spicier.

And then, of course, coming into yesterday, we actually kissed.

No squiggly numbers, as we used to say in baseball.

We got a run up last week, which almost hit 17, but a couple of points and then came right back down.

And we got what looked like, you know, Bill Luby always says that people will keep selling VIX until they don't.

when we get two moves to the upside, and Wednesday and Thursday.

So they're primarily placing bets on the pricing of implied volatility of the underlying as opposed to the direction of the underlying.

So where do we see this volatility? Well, one place you can see it is with the VIX index.

The VIX index is an index of overall market volatility.

It is the most popular index of expected market volatility on one to two month options on the S&P 500.

So the S&P 500 is a big equity index and the VIX tells us how volatile people think that will be over the next one to two month period.

So the VIX is an index that you can look up online and see how volatile people expect the overall market to be.

There's also actually futures and options available on the VIX.

So you're able to buy futures betting on an increase or sell futures and bet on a decrease in the VIX.

that at your back.

VIX had a little pop this week, but is pulling back hard.

Of course.

Now we can't have a VIX above 18.

I guess we did a few months ago.

They got to shut that down.

Yeah, be done with it.

No volatility.

So we're looking at one month forward implied volatility for the basket on a weighted basis that's probably in the neighborhood of nearly 60%, 60% implied volatility.

So to put things in perspective, you know, you can compare that if you're trying to say, okay, well, is 60 a big number? Is it a small number? Compare that to something like the VIX.

And I'll just take a look at where the VIX is, because that's a one month forward look at the anticipated volatility and say the S&P.

That's 15.

So it's one-fourth the number.

be worthwhile to take a look at that.

There are, you don't really see much panic in the equity market judged by the fear index, like the VIX index, but you are seeing, you are seeing, I got a note there.

I'll take a look at that in a moment.

Thank you.