Fear Index: Implied Volatility Can Alert You to Market Downturns
May 14, 2009
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By Geoff Considine, Ph.D.
After a year like 2008, everyone is craving indicators that will alert us to impending problems. Implied volatility is a standard risk-management statistic that signals trouble long before a meltdown. It has a range of uses in managing portfolios and setting investor expectations. Best of all, it is easier to track than ever.