Agoracom Blog

VIX Was Higher Than Oil For Most Of The Day

Posted by AGORACOM at 5:03 PM on Thursday, October 16th, 2008

I couldn’t line up these charts but you will note that from 10:30 AM to 3:30 PM, the VIX traded higher than oil.  Who would have ever predicted this, especially over the last 12 months?  The VIX has generally traded between 15 – 45 over the last 12 months, while oil has has generally traded $75 – $140 over the last 12 months.

Oil trading around $75 wasn’t that far of a stretch as the likes of Boon Pickens predicted that price a while ago.

However, what really blows the mind is that:

A]  The VIX shot over 50, 60, 70, 80!


B]  The VIX did this while oil was falling from 120, 100, 90, 80, 70!

One would have thought (pre-crisis) that falling oil prices would have been bullish for the markets, thereby driving the VIX lower.

We are truly investing in uncharted territory.


One Response to “VIX Was Higher Than Oil For Most Of The Day”

  1. JC says:

    It will be interesting to see how this is effected by the options market. Today is options expiry for October contracts. It’s interesting to note that 25% of all outstanding options are October puts, go figure!

    The contract with the most open interest was the SPY 1100 put which expired last night and was settled at the opening today. I’m guessing that we’ll see the vix drop quite substantially next week.