Measuring the S&P 500 on the VIX The composition of the VIX was changed in 2003. At that time, the CBOE created a "new" VIX by making two changes to the original version. First, options on the S&P 500 index were substituted for those on the S&P 100. The CBOE decided that the S&P 500 — a widely followed average commonly used by mutual funds as a benchmark … [Read more...]
VIX & Chicago Board Options Exchange (CBOE)
The ticker symbol for the Chicago Board Options Exchange (CBOE) Volatility Index, which shows the market's expectation of 30-day volatility. It is constructed using the implied volatilities of a wide range of S&P 500 index options. This volatility is meant to be forward looking and is calculated from both calls and puts. The VIX is a widely used measure of market risk and … [Read more...]
Chaikin Volatility Indicator
The Chaikin Volatility Indicator uses the percent change of two moving averages of a volume weighted accumulation-distribution line to determine the volatility of a financial data series. Chaikin quantifies volatility as a widening of the range between the high and the low price of a security. This does not take trading gaps into account as Average True Range does. As shown … [Read more...]
what is Market Breadth
Market breadth is a means of measuring the strength of a trend in a securities market. Market breadth studies include: advancing vs. declining securities; up volume vs. down volume; new highs vs. new lows; number of stocks trading above or below a moving average; etc., in the market or index that is being studied. Market breadth indicators are sometimes referred to as internal … [Read more...]
Different Types of Annuities
There are several different types of annuities available for investors. Each one has different features and meets different investment needs. The two major types of annuities are fixed and variable. A fixed annuity offers a fixed rate of return over a period of years, while a variable annuity's rate of return changes, depending on how well sub accounts … [Read more...]