When the VIX gets this high I look to cover some hedges, says Metropolitan Capital’s Karen Finerman

When the VIX gets this high I look to cover some hedges, says Metropolitan Capital’s Karen Finerman

Karen Finerman, Metropolitan Capital president, joins the ‘Fast Money’ traders to discuss the continued market sell-off and how she's navigating the volatility.

The commercial offensive launched by Donald Trump on April 2 caused European stock exchanges to lose 1,924 billion euros in three sessions. Today alone, Monday 7th, the Old Continent's price lists left 683 billion on the ground. The pan-European Stoxx 600 index fell 4.5%. Meanwhile, the so-called “fear indices” are flying, which measure the uncertainty — volatility — expected by traders. At their highest when panic breaks out in the markets, as …

Little is said in the media about the Cboe VIX index which is the Chicago Board of Options Exchange Volatility Index. According to the CFA Institute, it is a “proxy of implicit volatility” of the American markets in particular. It sounds clever but, as we discussed last week, volatility is just as much the differences in data from its average – the standard deviation. In this case, it refers to the volatility of the S&P 500 (that is why it is sa…

VIX Surge Indicates ‘Panic’ as Stock Rout Accelerates Globally

While the stock-market rout is accelerating around the world, measures of risk indicate the US is leading the way.

The stock market volatility index (VIX), also known as the fear index, has evolved to levels never seen since the pandemic of the new coronavirus in New York, a sign of investor nervousness. The results of the session indicate that the selective Dow Jones Industrial Average index fell 0.84%, the technological Nasdaq lost 2.15% and the expanded S&P500 devalued 1.57%, falling to the lowest level since more than a year ago. “Over the past few days,…

Capital Preservation During Times of Stress

Trade in Whisky;Yesterday, the VIX spiked higher and reached 60 at the US opening. That is a very high number that has never lasted for very long. It reflects higher future volatility in the stockmarket, derived from inflated option prices, which reflects extreme market uncertainty. The modest dip to 45 is no cause for celebration, but the extreme signal likely marks a low that ought to hold in the short term.   Sign up for our research The Mult…