Replies to post #10029 on Option Millionaires

[langlui]

it's simple. VIX is the "fear" index. In the bull market, VIX stays low in 10s and stocks go up like no brainer. In recent months, becuase of the fear level of the investors' sentiment about this market and overall economy has risen, the VIX went sky high to 90. When you have very high VIX, some traders see that the market is low enough and start buying calls hoping for a reversal, vice versa.

In the old days, investors are comfortable with market when VIX is in 10-20, and is really worried when VIX is 30

Of course it's just a measure, and is not accurate 100% of the time.

http://stockcharts.com/school/doku.php?id=chart_school:technical_indicators:introduction_to_mark#bullish_percent_index_bpi