Financial news
Written by: Jingjing He
2020-03-10 05:30
Last updated: 2020-03-10 05:30The sudden insertion of U.S. stocks triggered the fusing mechanism, coupled with the plunge in oil prices and the spread of the new crown pneumonia (Wuhan pneumonia) epidemic, and the investment market sentiment was abnormal. The Chicago Options Exchange Volatility Index (VIX), known as the "panic index," rose to 62.12, the highest since the financial tsunami in 2008.
The VIX Panic Index was compiled by Professor Robert E. Whaley in 1993. It measures the implied volatility of S & P 500 index options over the next 30 days. Taking the volatility index of 60 as an example, it represents the S & P 500 index ’s future 30-day Volatility is equivalent to rising and falling at a rate of 60% per year.
Generally speaking, the index is generally between 15 or 40. When the index is 15 or below, it reflects that the market is overly optimistic about the market and may be revised; when the index rises above 40, it indicates that the market is very pessimistic and panic. Very high.
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Since its establishment, the highest VIX panic index rose to 89.53 during the 2008 financial tsunami; the lowest was 8.56 set at the end of 2017.
U.S. stocks once narrowed the decline last night, but then they fell again and fell more than 2,000 points throughout the day. In points, it was the largest in history. It can be seen that the market is still panic. Bloomberg reported that a VIX call option was traded on Monday, showing that some investors are investing in the possibility that the VIX panic index will rise to three digits. "Bet" the VIX panic index will hit a new high on Tuesday.
U.S. stock market economy-VIX panic index