Volatility Spikes of market fear

September 29, 2008, the House of Representatives rejection for the bailout bill have sent Volatility index record intra-day high of 48.40, it closes at price of 46.72.

The VIX (^VIX) hit a high of 48.40, a true fear in the markets and ridiculous implied volatility in option contracts. 777.68 down on the DJIA (^DJI) is a record, officially worse than ‘87 Black Monday.


Comparing this with previous VIX , we are still not near the top range yet, but we can't be sure if this will be so until the House vote for the second time the bailout package on Wednesday, October 1, 2008.






Black Monday 1987 , Volatility recorded over 170 that day.



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