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> I'm pretty sure that the VIX only looks at implied volatility in options ~30 days to expiry. even then, this factors into the point. Implied volatility is ju
by gammateam 8y ago
> I'm pretty sure that the VIX only looks at implied volatility in options ~30 days to expiry.
even then, this factors into the point. Implied volatility is just how high over the theoretical price of the option people bid. If the greediest speculators aren't bidding those up anymore, and instead of piling into nearer term options expiring every day, then the ~30 day options aren't reflecting the same sentiment.