October 13, 2020

To gain an edge, this is what you need to know today.

Gamma Hedging

Please click here for a chart of Nasdaq 100 ETF (QQQ).

Note the following:

• The chart compares QQQ with  Cboe NASDAQ 100 Volatility Index (VXN).
• Most investors are familiar with the volatility index (VIX). VIX, also known as the ‘Fear Gage,’ is based on S&P 500 (SPX) options.  VXN is similar but is calculated on Nasdaq 100 (NDX).
• QQQ is an ETF that represents NDX.
• The normal behavior is for VXN to go down when QQQ goes up.
• The chart shows that yesterday VXN went up along with QQQ.