Some folks really misunderstand what volatility indexes actually do.
Let's get this straight: VIX and MOVE aren't crystal balls for the next decade. They're pricing tools for the next 30 days—that's it. And here's the kicker—they're not "fear gauges" either. That's Wall Street marketing talk.
What are they really? Option-pricing indexes. They measure the cost of a very specific type of downside protection in the derivatives market. Nothing more, nothing less.
If you're making long-term calls based on short-term volatility metrics, you're using the wrong compass.
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MevShadowranger
· 17h ago
VIX has indeed been mythologized.
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CoffeeNFTs
· 17h ago
It's correct to only look at the VIX in the short term.
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BlockchainFoodie
· 17h ago
You're cooking with the wrong recipe! VIX and MOVE are like tasting menus - they're designed for the next service, not next year's Michelin guide. Using them for long-term market predictions is like judging a restaurant's future by today's daily specials.
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CryptoComedian
· 17h ago
If you can't understand the future, just look at January.
Some folks really misunderstand what volatility indexes actually do.
Let's get this straight: VIX and MOVE aren't crystal balls for the next decade. They're pricing tools for the next 30 days—that's it. And here's the kicker—they're not "fear gauges" either. That's Wall Street marketing talk.
What are they really? Option-pricing indexes. They measure the cost of a very specific type of downside protection in the derivatives market. Nothing more, nothing less.
If you're making long-term calls based on short-term volatility metrics, you're using the wrong compass.