BEWARE: THE REAL REASON BEHIND THE TECH STOCK MOVE MAY BE GAMMA HEDGING
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