Option Based Sentiment Indicators
The VIX
- Vix is still high in the low 30’s but down from over 50
The Gist: volatility expectations are still high. But have declined significantly from prior week.
🤔 What’s the VIX?
Often called Wall Street’s “fear gauge,” the VIX tracks how much volatility traders expect in the S&P 500 over the next 30 days.
- Higher VIX = more fear or uncertainty
- Lower VIX = more calm or confidence
The Put/Call Ratio
Another option indicator. This looks to see if people are buying more puts (defensive) or more calls (optimistic)
Current reading: 0.66
The Gist: perhaps didn’t get quite as bearish as some of the other indicators