Market fear has been running rampant recently and with the Dow Jones Industrial Average dropping hundreds of 
points daily, it is easy to understand why. The CBOE Volatility Index know as the VIX has hit all time high levels that have exceed all previous readings since they started the index back in 1990.
Today the VIX hit 70.90; a month ago it closed at 24.52 ---an average level for the year. That is a 189% rise in the last month! In 2007 it averaged 17.3.
Before the current crisis the highest reading for the VIX was 45.74 recorded on 10/8/98. That means we have surpassed the previous high by 55%.
The VIX is based on call option premium scared investors are willing to pay for protection on their stocks.
Kevin Kersten is an Stock and Options Analyst with InvestorsObserver.com. Disclosure note: Mr. Kersten owns and/or controls a diversified portfolio of long and short positions that may include holdings in companies he writes about.
.gif){kind=logo}
Five winners of a weak dollar
For a quick-read on the U.S. economy, check the price of gasoline
Closing Bell: What Friday 13th curse? (ANF, BA, GENZ, DIS, PALM, PLA)
