This article was originally published in The Option Strategist Newsletter Volume 7, No. 12 on June 25, 1998.
With the frequent number of 100-plus point moves in the market – some in each direction – there has been a growing number of commentaries regarding market volatility. However, there has been very little, if any, discussion of just what to expect from the market at these levels. In this week’s article, we’re going to take a look at various measures of market volatility, and then see if we can determine what kind of volatility is “normal” for various scenarios.