VIX INDEX – Decline In Volatility Prepares My Portfolio For New Profits From The Fear Trade

The VIX Index remains one of the more intriguing strategy trades I use. Profits can be quite large but the amount of capital needed is usually small.

I have always found the strategy to be highly profitable and rarely have I had losing trades. The VIX Index is often referred to as the “fear index” since the VIX Index measures volatility in the stock market.

VIX Index – The Fear Index

The name “fear index” is aptly chosen as the index moves higher when markets are under stress. The VIX Index pushes a lot higher during corrections and moves still higher in bear markets and periods of heightened concern.

VIX Index Chart 1986 to 2016

The VIX Index chart from 1986 to 2016 is interesting to view. There highest recorded reading was in the October 1987 crash when the VIX rose to 171.52 as stocks collapsed. The second worst period was the credit crisis of 2008 to 2009. In that bear market the VIX Index rose to a high of $89.53.

What is also interesting is the number of times the VIX Index has risen to 50. The August 2015 drop registered a reading above 50 at 53.29 which was the highest reading since the credit crisis.

VIX Index Chart 1986 to 2016

VIX Index Chart 1986 to 2016

VIX Index Strategy Update

This is the latest discussion and update on the VIX Index for those members who follow this trade strategy.

To read this latest VIX Index strategy discussion, FullyInformed Members can login directly through this link or sign into the full members site here. Non-members can join here or read about the benefits of membership.

VIX Index Strategy Links

To learn more about this strategy I suggest reviewing the links below

This article outlines the entire VIX Index Call Options Strategy

VIX Index Rescue Strategy Ideas (For When Trades Fail)

10 Common Errors To Avoid When Trading The VIX Index Strategy

Understanding Volatility and The VIX Index for Profiting

Patience and Scaling Into Positions Creates Better Profits and Protection

All strategy articles on the VIX Index Strategy

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Disclaimer: There are risks involved in all investment strategies and investors can and do lose capital. Trade at your own risk. Stocks, options and investing are risky and can result in considerable losses. None of the strategies, stocks or information discussed and presented are financial or trading advice or recommendations. Everything presented and discussed are the author’s own trade ideas and opinions which the author may or may not enter into. The author assumes no liability for topics, ideas, errors, omissions, content and external links and trades done or not done. The author may or may not enter the trades mentioned. Some positions in mentioned stocks may already be held or are being adjusted.