The Traderszone Network

Published in Options · TZ Featured Lists 24 December, 2011 by The TZ Featured Staff

An Early Xmas Gift For Investors Looking To Limit Risk

By David Pinsen:

S&P 500 Volatility drops to its lowest level since late July

On Friday, December 23rd, risk-averse investors received an early gift: stock market volatility, as measured by the VIX S&P 500 volatility index, declined to its lowest level since late July, as shown by the chart below:

This is good news for investors looking to limit risk, as, all things equal, hedging costs tend to be lower when volatility is lower.

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