Monday, April 2, 2012

VIX Options, Explained

The VIX (CBOE Volatility Index) is a measure of the implied volatility in SP 500 options contracts, and investors are now able to trade this index by buying options on this index. One can only buy options on this index because there is no underlying security to purchase, as the VIX is just an index based on calculations. Keep in mind that these options are cash settled, and are European style in that you are not able to exercise them until the day of expiry. To read the full article please go to Seeking Alpha

Blue Chip Names That Missed The Rally And Are Set To Make A Comeback

Back in October, few saw a rally coming; the consensus view on Wall Street was more along the lines of the world as we know it was ending and a prolonged double dip recession was on the horizon. The SP500 at 1400 seemed to be like wishful thinking rather than even a remote possibility. So as the rally began, many investors sat on the sidelines, remaining in cash as the SP 500 (SPY) rose over 27% from the lows seen on October 4th. Now 5 months later, Investors are much more confident in the market as some stability has been achieved in Europe and consumer sentiment is showing signs of improvement domestically. The question remains, what should investors that missed the rally do? To read the full article please go to Seeking Alpha.