VIX and More_ VXO Chart From 1987-1988 and Explanation of VIX Vs

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  • 7/29/2019 VIX and More_ VXO Chart From 1987-1988 and Explanation of VIX Vs

    1/16

    1/13/12IX and More: VXO Chart f rom 1987-1988 and Explanation of VIX vs . VXO

    1/16v ixandmore.blogspot.it /2008/10/v xo-chart-f rom-1987-1988-and.html

    TUESDAY , OCTOBER 7 , 2008

    VXO Chart from 1987-1988 and Explanation ofVIX

    vs. VXO

    In the past, I have gone to some length to differentiate between the VIX

    and theVXO, but given all the confusion I have seen in the media over

    new VIX records, I think it is time to offer up some history that may

    help clarify the situation.

    A good place to start, frankly , is with a prior post that I titled Ten

    Things Everyone Should Know About the VIX. For the v isual learners

    out there, I have reduced the history of the VIX and theVXO to a

    graphical timeline below. Here are some of the important facts in a

    nutshell:

    The VIX was launched in 1993In September 2003 the formula used to calculate the VIX wasmodified substantiallyData from the new 2003 VIX formula has been assigned the VIXticker, but the CBOE published a reconstruction of historicaldata for the new VIX formulation going back to 1990

    At the same time, the data (both historical and subsequent)associated with the original VIX formula was assigned a new

    VXO ticker

    The result is that for all practical purposes when you or your data

    provider refer to the VIX, this means the new 2003 VIX calculation and

    the historical reconstruction of the data for the new VIX formula.

    Similarly, the VXO ticker refers to VXO data from 2003 to the present,

    original VIX data from 1993 to 2003, and a historical reconstruction

    of original VIX data that goes back to 1986.

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    3/16

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    [source: Yahoo, VIX and More]

    POSTED BY BILL LUBY A T8:20 A M

    LABELS: 1987, EDUCATIONAL, VX O

    1 C O MMENT S :

    Anonymous said...

    Thanks for this article! It provides a nice recap of VIX and its history.

    By the way, you have a very nice blog! I came across it last week while

    reading up on potential uses of volatility as an asset class. I've been

    reading all I can to better understand VIX.

    Thanks again!

    FEBRUARY 25, 2011 11 :36 AM

    Post a Comment

    L I N K S T O T HI S P OS T

    Create a Link

    VIX - EDUCATIONAL

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    Ten Things Everyone

    Should Know About the

    VIX

    Overview of the U.S.Volatility Indices

    The Evolution of the

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    Volatility?

    VXO Chart from 1987-1988

    and Explanation of VIX

    vs. VXO

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    DISCLAIMER: "VIX" is a trademark of Chicago Board OptionsExchange, Incorporated. Chicago Board Options Exchange,Incorporated is not affiliated with this website or this website'sowner's or operators. CBOE assumes no responsibility for theaccuracy or completeness or any other aspect of any content posted

    on this website by its operator or any third party. All content on thissite is provided for informational and entertainment purposes onlyand is not intended as advice to buy or sell any securities. Stocks aredifficult to trade; options are even harder. When it comes to VIX

    derivatives, don't fall into the trap of thinking that just because youcan ride a horse, you can ride an alligator. Please do your ownhomework and accept full responsibility for any investment decisionsyou make. No content on this site can be used for commercial purposeswithout the prior written permission of the author. Copyright 2007-2012 Bill Luby. All rights reserved.

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    The VIX in the Context

    of Historical

    http://vixandmore.blogspot.it/2008/10/vix-in-context-of-historical-volatility.htmlhttp://vixandmore.blogspot.it/2008/10/vix-drops-20-in-one-dayagain.htmlhttp://vixandmore.blogspot.it/2008/10/cboe-offers-new-vix-term-structure-data.htmlhttp://vixandmore.blogspot.it/2008/10/vix-soq-at-6304.htmlhttp://vixandmore.blogspot.it/2008/10/rare-batman-pattern-forming-in-vix.htmlhttp://vixandmore.blogspot.it/2008/10/vix-at-7789-as-panic-deepens.htmlhttp://vixandmore.blogspot.it/2008/10/should-you-go-long-at-volatility.htmlhttp://vixandmore.blogspot.it/2008/10/futures-limit-down-today-will-be-very.htmlhttp://vixandmore.blogspot.it/2008/10/first-vix-print-is-8900.htmlhttp://vixandmore.blogspot.it/2008/10/relative-strength-in-rails-metals-gas.htmlhttp://vixandmore.blogspot.it/2008/10/last-90-minutes-will-be-critical.htmlhttp://vixandmore.blogspot.it/2008/10/two-new-vix-records.htmlhttp://vixandmore.blogspot.it/2008/10/pre-market-futures-volatility.htmlhttp://vixandmore.blogspot.it/2008/10/fear-is-on-decline.htmlhttp://vixandmore.blogspot.it/2008/10/week-by-week-look-at-past-six-months.htmlhttp://vixandmore.blogspot.it/2008/10/record-close-for-vix-8006.htmlhttp://vixandmore.blogspot.it/2008/10/spx-put-bomb-update.htmlhttp://vixandmore.blogspot.it/2008/10/is-fear-bubble-bursting.htmlhttp://vixandmore.blogspot.it/2008/10/recent-volatility-and-vix-macro-cycles.htmlhttp://vixandmore.blogspot.it/2008/10/watch-emerging-market-bonds.html
  • 7/29/2019 VIX and More_ VXO Chart From 1987-1988 and Explanation of VIX Vs

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    1/13/12IX and More: VXO Chart f rom 1987-1988 and Explanation of VIX vs . VXO

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    Volatility of...

    SPX Historical

    Volatility Snapshot

    VIX Closes Over 70 for

    First Time (70.33)

    TED Spread and VIX

    Both Coming Back toEarth?

    VIX:VXV to 1.51

    Support Broached in

    NDX

    Welcome to the 80s:

    VIX at 81.17

    VIX Spikes to Record

    of 77.72

    VIX Oct 100 Calls: Bid

    0.55 - Ask 0.95

    Second Highest VIX

    Close Ever: 69.25

    VIX Spikes to 66.25

    Excellent Summary of

    Financial Crisis at

    Freakonom...

    Could Today Be a

    Higher Low?

    Implied Volatility Over

    150 in EWZ, the

    Brazil ETF...

    Yesterday s VIX Drop

    Is Fifth Largest Ever

    in Perc...

    DJIA +573 Today; VIX

    at 61.43

    Institutional Interest

    High in These Nine

    Large Ca...

    Two More VIX

    Records

    VIX NovemberFutures

    VIX to 70.56 as

    Markets Start to

    http://vixandmore.blogspot.it/2008/10/vix-to-7056-as-markets-start-to-snap.htmlhttp://vixandmore.blogspot.it/2008/10/vix-november-futures.htmlhttp://vixandmore.blogspot.it/2008/10/two-more-vix-records.htmlhttp://vixandmore.blogspot.it/2008/10/institutional-interest-in-high-in-these.htmlhttp://vixandmore.blogspot.it/2008/10/djia-573-today-vix-at-6143.htmlhttp://vixandmore.blogspot.it/2008/10/yesterdays-vix-drop-is-fifth-largest.htmlhttp://vixandmore.blogspot.it/2008/10/implied-volatility-over-150-in-ewz.htmlhttp://vixandmore.blogspot.it/2008/10/could-today-be-higher-low.htmlhttp://vixandmore.blogspot.it/2008/10/excellent-summary-of-financial-crisis.htmlhttp://vixandmore.blogspot.it/2008/10/vix-spikes-to-6625.htmlhttp://vixandmore.blogspot.it/2008/10/second-highest-vix-close-ever-6925.htmlhttp://vixandmore.blogspot.it/2008/10/vix-oct-100-calls-bid-055-ask-095.htmlhttp://vixandmore.blogspot.it/2008/10/vix-spikes-to-7505.htmlhttp://vixandmore.blogspot.it/2008/10/80s-bad-music-bad-stocks.htmlhttp://vixandmore.blogspot.it/2008/10/support-broached-in-ndx.htmlhttp://vixandmore.blogspot.it/2008/10/vixvxv-to-151.htmlhttp://vixandmore.blogspot.it/2008/10/ted-spread-and-vix-both-coming-back-to.htmlhttp://vixandmore.blogspot.it/2008/10/vix-closes-over-70-for-first-time-7033.htmlhttp://vixandmore.blogspot.it/2008/10/spx-historical-volatility-snapshot.htmlhttp://vixandmore.blogspot.it/2008/10/vix-in-context-of-historical-volatility.html
  • 7/29/2019 VIX and More_ VXO Chart From 1987-1988 and Explanation of VIX Vs

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    Snap Back

    OHFDEX One Y ear

    Later

    New Record Close for

    Volatility Indices

    Feels Like Capitulation

    to Me

    VIX October 80 Calls

    Quoted 0.40-0.55

    VIX Hits 60

    Capitulation Leg?

    Failure to Launch

    VIX Sets Third

    Consecutive End of

    Day High

    VIX October 70 Calls

    Last Traded at

    $0.50

    Yet Another VIX

    Record: 58.36

    A Conceptual

    Framework for

    Volatility Events

    Another VIX Record

    Close: 53.68

    XLF Equals Mid-July

    Low

    VXO Chart from 1987-

    1988 and

    Explanation of VIX

    vs...

    Two Bond Blogs to

    Read

    VIX Over 56; Expect

    Snap Back Soon

    VIX Sets New Record

    of 50.75

    VIX Expected to Open

    at 53-54

    Environmental Factors

    and Chart Reading

    S&P 500 Index Sets

    http://vixandmore.blogspot.it/2008/10/s-500-index-sets-new-volatility-record.htmlhttp://vixandmore.blogspot.it/2008/10/environmental-factors-and-chart-reading.htmlhttp://vixandmore.blogspot.it/2008/10/vix-to-open-at-53-54.htmlhttp://vixandmore.blogspot.it/2008/10/vix-sets-new-record-of-4986.htmlhttp://vixandmore.blogspot.it/2008/10/vix-over-56-expect-snap-back-soon.htmlhttp://vixandmore.blogspot.it/2008/10/two-bond-blogs-to-read.htmlhttp://vixandmore.blogspot.it/2008/10/vxo-chart-from-1987-1988-and.htmlhttp://vixandmore.blogspot.it/2008/10/xlf-teetering-above-mid-july-low.htmlhttp://vixandmore.blogspot.it/2008/10/another-vix-record-close-5368.htmlhttp://vixandmore.blogspot.it/2008/10/conceptual-framework-for-volatility.htmlhttp://vixandmore.blogspot.it/2008/10/yet-another-vix-record-5836.htmlhttp://vixandmore.blogspot.it/2008/10/vix-october-75-calls-last-traded-at-050.htmlhttp://vixandmore.blogspot.it/2008/10/vix-sets-third-consecutive-end-of-day.htmlhttp://vixandmore.blogspot.it/2008/10/failure-to-launch.htmlhttp://vixandmore.blogspot.it/2008/10/capitulation-leg.htmlhttp://vixandmore.blogspot.it/2008/10/vix-hits-60.htmlhttp://vixandmore.blogspot.it/2008/10/vix-october-80-calls-quoted-040-055.htmlhttp://vixandmore.blogspot.it/2008/10/feels-like-capitulation-to-me.htmlhttp://vixandmore.blogspot.it/2008/10/new-record-close-for-volatility-indices.htmlhttp://vixandmore.blogspot.it/2008/10/ohfdex-one-year-later.htmlhttp://vixandmore.blogspot.it/2008/10/vix-to-7056-as-markets-start-to-snap.html
  • 7/29/2019 VIX and More_ VXO Chart From 1987-1988 and Explanation of VIX Vs

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    IX and More: VXO Chart f rom 1987-1988 and Explanation of VIX vs . VXO

    14/16v ixandmore.blogspot.it /2008/10/v xo-chart-f rom-1987-1988-and.html

    New Volatility

    Record for Fourt...

    A Week in the Life of

    VIX Calls

    September (33)

    August (26)

    July(28)

    June (23)

    May(23)

    April (28)

    March (32)

    February(33)

    January(34)

    2007 (412)

    PURPOSE OF THIS

    BLOG

    The intent of this blog is to

    provide an archived learning

    laboratory of sorts as I try to

    sharpen my thinking in areas

    such as volatility, market

    sentiment, and technical

    analysis. I also enjoy

    charging off on tangents and

    hope that readers may find

    http://vixandmore.blogspot.com/2007/02/why-entire-blog-dedicated-to-vix_13.html%20http://www.ino.com/info/521/CD3439/&dp=0&l=0&campaignid=6http://vixandmore.blogspot.it/search?updated-min=2007-01-01T00:00:00-08:00&updated-max=2008-01-01T00:00:00-08:00&max-results=50http://void%280%29/http://vixandmore.blogspot.it/2008_01_01_archive.htmlhttp://void%280%29/http://vixandmore.blogspot.it/2008_02_01_archive.htmlhttp://void%280%29/http://vixandmore.blogspot.it/2008_03_01_archive.htmlhttp://void%280%29/http://vixandmore.blogspot.it/2008_04_01_archive.htmlhttp://void%280%29/http://vixandmore.blogspot.it/2008_05_01_archive.htmlhttp://void%280%29/http://vixandmore.blogspot.it/2008_06_01_archive.htmlhttp://void%280%29/http://vixandmore.blogspot.it/2008_07_01_archive.htmlhttp://void%280%29/http://vixandmore.blogspot.it/2008_08_01_archive.htmlhttp://void%280%29/http://vixandmore.blogspot.it/2008_09_01_archive.htmlhttp://void%280%29/http://vixandmore.blogspot.it/2008/10/week-in-life-of-vix-calls.htmlhttp://vixandmore.blogspot.it/2008/10/s-500-index-sets-new-volatility-record.html
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    some illumination or at least

    amusement in these forays.

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