Why does VIX go up when market goes up?
The VIX rises as a result of increased demand for puts but also swells because the put options' demand increase will cause the implied volatility to rise. Like any time of scarcity for any product, the price will move higher because demand drastically outpaces supply
this scenario we are observing right now..today...hence its the Lesson for us to Understand
What happens to VIX when market goes up?
While there are other factors at work, in most cases, a high VIX reflects increased investor fear and a low VIX suggests complacency. ... During periods of market turmoil, the VIX spikes higher, largely reflecting the panic demand for OEX puts as a hedge against further declines in stock portfolios.
How does VIX affect stock market?
VIX is a very good measure of risk perception of the markets. When you see VIX going up sharply then you can be certain that volatility expectations of the market are going up sharply. ... There has been a consistently negative correlation between the VIX and the Nifty levels.
hence next Week Far OTM CALL& PUTS options Sold to eat Premium Decay...Easy Money...