VIX May Still Be Too High: Chart of the Day
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The stock-market volatility gauge known as the VIX may be too high even after dropping to a five-year low, according to Adam Warner, an option trader and contributor to Schaeffer’s Investment Research.
The CHART OF THE DAY illustrates how Warner reached his conclusion: by comparing the VIX, or the Chicago Board Options Exchange Volatility Index, with the SPDR Standard & Poor’s 500 exchange-traded fund’s volatility during the previous 10 trading days.