VIX Buy/Sell Signals For Option Traders

Posted on Mo 10 März 2008 in misc • 1 min read

Ah, the almighty ^VIX, everyone’s favorite indicator and the one index that a lot of option traders watch with bated breath. What if I were to tell you that you can use Stock Neuromaster to generate BUY/SELL signals for the ^VIX? Would you be interested?

[StockNeuroMaster, VIX, 03/08/2008I’m sure that option traders and writers would be keenly interested if a ^VIX neural net model generated a SELL signal for a new short position because it would mean volatility is expected to drop. If it generated a BUY signal for a long position, then the option trader would expect volatility to increase! Don’t believe me?  Here’s the chart!

Another way to use this when trading options is to build a neural net model for a particular stock and then buy/sell call and put options against it!