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| 2008/10/3-6 [Industry/Startup, Finance/Investment] UID:51367 Activity:nil |
10/3 Stock tip 2: Lifetime of this pump will be much more short lived
than people might expect. (I.e., do not go all in long, although you
could do so if you put in some stops--but that isn't long, is it?
times like this are where the phrase "don't try to time the market"
originate from)
\_ Stock tip A: VIX levels like this are only seen at the top or the
bottom of the market. We know we are not at the top, so...
\_ Stock tip mu: Ignore stock advice based on technical factors
given by random hosers.
\_ VIX is a measure of put and call options based on volume and
difference from fair value. Notice how shorts are prohibited
for about a 1,000 stocks? They're all in options now. Stock
tip mu guy is right--you'd be hosed if you didn't understand
this. -op
\_ VIX has nothing to do with "fair value" whatever that means:
http://preview.tinyurl.com/4exdqx
\_ http://www.investopedia.com/terms/f/fairvalue.asp
ok, probably the wrong term, but let's just say, "the
current market price of the underlying"
\_ Lifetime of the pump after House passage was assured: 0 minutes. -op |
| 5/24 |
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| preview.tinyurl.com/4exdqx -> financial-dictionary.thefreedictionary.com/VIX+-+CBOE+Volatility+Index VIX - CBOE Volatility Index The ticker symbol for the Chicago Board Options Exchange (CBOE) Volatility Index, which shows the market's expectation of 30-day volatility. It is constructed using the implied volatilities of a wide range of S&P 500 index options. This volatility is meant to be forward looking and is calculated from both calls and puts. Notes: The first VIX, introduced by the CBOE in 1993, was a weighted measure of the implied volatility of eight S&P 100 at-the-money put and call options. Ten years later, it expanded to use options based on a broader index, the S&P 500, which allows for a more accurate view of investors' expectations on future market volatility. VIX values greater than 30 are generally associated with a large amount of volatility as a result of investor fear or uncertainty, while values below 20 generally correspond to less stressful, even complacent, times in the markets. The index is often referred to as the "investor fear gauge". All content on this website, including dictionary, thesaurus, literature, geography, and other reference data is for informational purposes only. This information should not be considered complete, up to date, and is not intended to be used in place of a visit, consultation, or advice of a legal, medical, or any other professional.. |
| www.investopedia.com/terms/f/fairvalue.asp This is equal to the spot price after taking into account compounded interest (and dividends lost because the investor owns the futures contract rather than the physical stocks) over a certain period of time. If the futures are above fair value then traders are betting the market index will go higher, the opposite is true if futures are below fair value. Discounted Cash Flow Analysis - Find out how analysts determine the fair value of a company with this step-by-step tutorial and learn how to evaluate an investment's attractiveness for yourself. Working Through The Efficient Market Hypothesis - Deciding whether it's possible to attain above average returns requires an understanding of this concept. DCF Analysis: Coming Up With A Fair Value - Having estimated the free cash flow produced over the forecast period, we need to come up with a reasonable idea of the value of the company''s cash flows after that period. Alternatives to Closing Below Intrinsic Value - Understanding how options work and the markets they trade in will help you get a better price for your option. |