Volatility Forecast

Volatility Forecast: This Volatility forecast is designed for investors and analysts who need predictions of the implied volatility for a basket of put and call options related to a specific index. It includes 8 volatility indices with bullish and bearish signals and indicates the best Volatility Index to trade:

• Volatility indices for the long position
• Volatility indices for the short position

Package Name: Volatility
Recommended Positions: Long
Forecast Length: 1 Month (02/28/2018 – 03/28/2018)
I Know First Average: 16.26%

For this 1 Month forecast the algorithm had successfully predicted 8 out of 10 movements. The highest trade return came from ^VXN, at 47.34%. The suggested trades for ^VXO and ^VXD also had notable 1 Month yields of 41.19% and 35.43%, respectively. The overall average return in this Volatility package was 16.26%, providing investors with a 21.34% premium over the S&P 500’s return of -5.08% during the same period.

CBOE NASDAQ-100 Volatility Index (VXN) is a key measure of market expectations of near-term volatility conveyed by NASDAQ-100 Index (NDX) option prices. It measures the market’s expectation of 30-day volatility implicit in the prices of near-term NASDAQ-100 options.

Algorithmic traders utilize these daily forecasts by the I Know First market prediction system as a tool to enhance portfolio performance, verify their own analysis and act on market opportunities faster. This forecast was sent to current I Know First subscribers.

How to interpret this diagram

Please note-for trading decisions use the most recent forecast. Get today’s forecast and Top stock picks.