This Week in VIX and VXN – 11/1/2013

The spread between VIX and VXN was pretty wide as of last Friday at 1.67 – it narrowed this past week as earnings season started to get behind us and nothing new is expected out of Apple (AAPL – 520.03) any time soon.  I have noticed over the past year that VXN seems to be a little more forward looking than VIX based on the type of stocks that comprise the Nasdaq-100 (think headline movers during earnings season).  Before getting all excited about a potential seasonal trade around earnings do note the price changes for the November VIX and VXN contracts on the table below.  They both dropped in line with each other.  Volatility futures are pretty darn anticipatory relative to their underlying indexes and that is a great example of this sort of behavior.

VIX was slightly higher despite the S&P 500 climbing this week.  I know that gets some market watchers pretty excited, but coming off a low base makes me skeptical if there is any useful information in that price action.  Finally, I will be up at 2:00 am this morning to witness the first opening of VIX futures to coincide with European market hours.   For vixophiles everywhere this is the opportunity to get a read on the influence of international markets on anticipated volatility changes here in the US.

VIX VXN

  • disqus

    Which one is the VIX, VXN,or S&P from those two lines?? If I know then I wouldn’t need to read this article..