NASDAQ-100 (BIGTECH) VOLATILITY INDEX. IMPORTANT LEVELS TO LEARN

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Broadly-known ominously among investors as the "fear index" and launched by the Chicago Board Options Exchange (now the Cboe) in 1993, the Volatility Index (VIX) is meant to present the market's expectation of volatility over the coming 30 days. The metric is derived from options prices on the S&P 500 Index and captures the anticipated swings that drive investor sentiment.

In recent years, the VIX has become a far more central index, especially during periods of financial turbulence, such as the 2008 financial crisis and the COVID-19 pandemic. During these stretches, spikes in the VIX reflected widespread anxiety; during others, it's been a crucial barometer for market participants seeking a glimpse into investors' collective psyche. When the VIX is low, this suggests calm seas ahead. When it spikes, it signals approaching storms.

Every single stock index do have its own volatility. This story is about Cboe NASDAQ-100 Volatility Index

The Cboe NASDAQ-100 Volatility Index (VXN) is a key measure of market expectations of near-term volatility conveyed by NASDAQ-100 Index (NDX) option prices. It measures the market's expectation of 30-day volatility implicit in the prices of near-term NASDAQ-100 options. VXN is quoted in percentage points, just like the standard deviation of a rate of return, e.g. 19.36. Cboe disseminates the VXN index value continuously during trading hours.

The VXN Index is a leading barometer of investor sentiment and market volatility relating to the NASDAQ-100 Index.
Learn more about Methodology for Calculation of the VXN Index, using official CBOE website.

Technical observations

The main technical graph indicates that VXN Index has recently jumped, from 5-year lows around 15 basic points in mid-June, 2024 to current 25 basic points.
In nowadays 25-level corresponds to 5-years SMA, and is the major one resistance level.

In any case of breakthrough it certainly cracks the door to 40-levels and potentially even much above.

Think twice. Then leap.
Cheers, Pandorra


Snapshot



Trade ist aktiv
August 2, 2024

👉 Nasdaq 100 Volatility index VXN jumped to as much as to 30 level, breaks 52-WEEK HIGHS, due to labour market situation.

.. this is pzdc 🫣

Snapshot
Trade ist aktiv
August 5, 2024

Nasdaq 100 Volatility index VXN has recently jumped to as much as 40 level (as expected), as 25 key level was passed through several days before.


Snapshot
Anmerkung
August 7, 2024

👉 Pzdc a little bit reliefed.
👉 VXN still sits at 25+ levels.
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