Microsoft Earnings: Why the Stock Is Down in After-Hours Trading on Quarterly Results
Many trading systems utilize moving averages as independent variables and market analysts frequently use moving averages to confirm technical breakouts. Given the differing factors driving the day-to-day action in each index, VIX and SPX are generally expected to maintain an inverse correlation with one another. As such, many analysts and market watchers track the VIX as a contemporaneous indicator of investor sentiment, and it’s often referred to casually as the «fear index» or «fear gauge.»
CBOE Volatility Index (VIX): What Does It Measure in Investing?
One of the most popular and accessible of these is the ProShares VIX Short-Term Futures ETF (VIXY), which is based on VIX futures contracts with a 30-day maturity. Some exchange-traded securities let you speculate on implied volatility up to six https://www.1investing.in/ months in the future, such as the iPath S&P 500 VIX Mid-Term Futures ETN (VXZ), which invests in VIX futures with four- to seven-month maturities. The CBOE Volatility Index—also known as the VIX—is a primary gauge of stock market volatility.
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But because of how they’re constructed, even the best volatility ETFs tend to decline in value over time, even if they do spike higher in times of intense volatility. Any estimates based on past performance do not a guarantee future performance, and prior to making any investment you should discuss your specific investment needs or seek advice from a qualified professional. New Highs/Lows only includes stocks traded on NYSE, NYSE Arca, Nasdaq or OTC-US exchanges with over 5 days of prices, with a last price above $0.25 and below $10,000, and with volume greater than 1000 shares.
How can I trade the VIX?
- The VIX was the first benchmark index introduced by CCOE to measure the market’s expectation of future volatility.
- After each calculation the program assigns a Buy, Sell, or Hold value with the study, depending on where the price lies in reference to the common interpretation of the study.
- The VIX, which was first introduced in 1993, is sometimes called the “fear index” because it can be used by traders and investors to gauge market sentiment and see how fearful, or uncertain, the market is.
- But its affordability and content richness cement its worth in the streaming arena.
Once you’re in, you’ll see select content with a Gratis banner—indicating it’s free to watch with no sign-up or credit card required. With its budget-friendly plans, ViX is nearly first steps in mbo process involves perfect for anyone who wants to stream Spanish-language content. It boasts a rich library of TV shows and movies while offering exclusive live sports and news coverage.
When volatility is low, options become cheaper, so today we’re taking a look at the Long Straddle Screener…. Volatility remains compressed as this bull market rolls on, with the VIX Index closing at 14.33 yesterday. When volatility is low, options become cheaper, so today we’re taking a look at the Long Straddle… Volatility remains compressed as this bull market rolls on, with the VIX Index closing at 12.55 yesterday. Since ViX’s launch, our TV experts have researched and tested the service across several devices. We examined the streaming service’s pricing, live and on-demand content, features, and reliability.
Information within this material is not intended to be used as a primary basis for investment decisions and should also not be construed as advice meeting the particular investment needs of any individual investor. Trading signals produced by the Lead-Lag Report are independent of other services provided by Lead-Lag Publishing, LLC or its affiliates, and positioning of accounts under their management may differ. Please remember that investing involves risk, including loss of principal, and past performance may not be indicative of future results. Lead-Lag Publishing, LLC, its members, officers, directors and employees expressly disclaim all liability in respect to actions taken based on any or all of the information in this writing.
In the last month, major stock indexes like the S&P 500 have been pulled downward as a result of disappointing earnings reports from big tech stocks. If you’ve been following financial news, you may have heard the word «volatility» being thrown around a lot — and you may have heard a reference to a volatility measurement called the VIX. This may influence which products we review and write about (and where those products appear on the site), but it in no way affects our recommendations or advice, which are grounded in thousands of hours of research. Our partners cannot pay us to guarantee favorable reviews of their products or services.
To spare you the math headache involved with calculating the price, let’s look instead at the data used to calculate it. The VIX index is specifically measuring expected volatility for another index, the S&P 500. True to its name, the S&P 500 index is composed of 500 of the largest publicly traded companies in the U.S. Because the S&P 500 includes so many large companies across several different market sectors, it is generally viewed as a good indication of how the U.S. stock market is performing overall.
Utility stocks are perking up again, another sign that investors are trying to counter risk. And Treasurys are stabilizing as investors start to price in a rate-cutting cycle by the Federal Reserve. But for those who are more inclined to trade and speculate, ETFs that track the VIX can be a useful tool. When uncertainty and fear hits the market, stocks generally fall, and your portfolio could take a hit.
The New Highs/Lows widget provides a snapshot of US stocks that have made or matched a new high or low price for a specific time period. Stocks must have traded for the specified time period in order to be considered as a new High or Low. Small and large dividend stock and ETF investors can use covered calls and puts trades to generate monthly income from options premiums and options trading. As a rule of thumb, VIX values greater than 30 are generally linked to large volatility resulting from increased uncertainty, risk, and investors’ fear.
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more – straight to your e-mail. Microsoft’s gaming revenue rose 44% in the quarter, but the result included a 48 percentage point positive impact from the Activision Blizzard acquisition. New generative-AI technology has required heavy spending at Microsoft and its rivals like Google-parent Alphabet, so Nadella has felt pressure to show results. He unleashed a stream of growth figures, most of them quarter-over-quarter, to show how steeply the uptake of AI products like AzureAI and Copilot is rising. First off, as I’ve noted before, from a seasonality perspective, we are in the window where historically volatility for stocks tends to rise in an election year.
Products based on other market indexes include the Nasdaq-100 Volatility Index (VXN); the CBOE DJIA Volatility Index (VXD); and the CBOE Russell 2000 Volatility Index (RVX). The VIX has paved the way for using volatility as a tradable asset, albeit through derivative products. CBOE launched the first VIX-based exchange-traded futures contract in March 2004, followed by the launch of VIX options in February 2006.
When investors trade options, they are essentially placing bets on where they think the price of a specific security will go. In many cases, large institutional investors will use options trading to hedge their current positions. So, if the big firms on Wall Street are anticipating an upswing or downswing in the broader market, they may try to hedge against that volatility by placing options trades. If many of the large investment firms are anticipating the same thing, there is usually a spike in options trading for the S&P 500. The VIX index uses the bid/ask prices of options trading for the S&P 500 index in order to gauge investor sentiment for the larger financial market.