Tuesday, September 7, 2010

Vexed With VIX ?????

7 comments:

Sujatha said...

Thanks for the timely post.

Please look at "big boss $" too is it ready for a upmove and in double bottom?

saravanan said...

pl update till 09.09.10

alphabet1 said...

Today Sept 9, a new top 5640 and am sure vix hits a low of 14.9 and settle at 15.9, lower than yesterday.

More upside coming it seems?

Such strides in Nifty with low VIX can be explained also by the fact there is drop in Money Flow Index.

and yet we rise to highs. Puzzling indeed. Big move coming.

Girish Desai said...

Good analysis Manoj. Please update the chart whenever you can.

My understanding is that the cost of insuring one's portfolio for an outright crash has become cheap.

Since market is running away and some fund managers might be under-invested they will feel the pressure to jump in.

So this mostly makes fund managers put more money into a liquid uptrending market and buy far OTM puts for next few months.

This is exactly what happened in March-April and we all know what happened in May.

BTW, have you seen FIIs buying in options for the last 15-20 days. It must have exceeded $10B by now!

Anonymous said...

bhai,

very nice and a different perspective :)

best regards,
mbN

stockastrology.blogspot.com said...

Sir,

Vix has lately being going up alongwith market. What's your view on this?

Tryin2Trade said...

Sorry Folks for not replying late...kinda busy with my work...

Yes VIX is still vexing...damnit it had also started to rise with the index...

I dont how to interpret this move...maybe a few friends who follow options data would throw some light on it....i guess puts were also going up crazily with nifty????

Cheers!!!