Nasdaq Index Volatility by Hour, Day, Month - Take-profit.org (2024)

FAQs

What days is Nasdaq most volatile? ›

Nasdaq 100 Index (NAS100) Volatility Data

The most volatile day is Thursday (316 points or 2.45%). The least volatile day is Monday (101 points or 0.76%).

NASDAQ-100 VIX is at a current level of 22.29, down from 23.94 the previous market day and up from 19.67 one year ago. This is a change of -6.89% from the previous market day and 13.32% from one year ago.

The Nasdaq-100 Volatility Control 12% Index (XNDX12E™) is designed to deliver total-return exposure to the Nasdaq-100 Index® (XNDX®), while targeting a constant 12% level of volatility.

$NDX has an average implied volatility of 31.18% for options expiring Jul 31, 2024 (1 days).

What Is the 11am Rule in Trading? If a trending security makes a new high of day between 11:15-11:30 am EST, there's a 75% probability of closing within 1% of the HOD.

Certain days of the week tend to see higher volatility and trading volume. Mondays and Fridays tend to be the most active nasdaq trading days.

How Much Market Volatility Is Normal? Markets frequently encounter periods of heightened volatility. As an investor, you should plan on seeing volatility of about 15% from average returns during a given year.

The strategy uses a mean reversion component to penalize stocks that rise too much or too fast. Protection - The strategy allocates a portion to treasuries to balance out the supercharged Nasdaq momentum stocks. This improves risk adjusted returns and moderates strategy drawdowns.

Common strategies to trade volatility include going long puts, shorting calls, shorting straddles or strangles, ratio writing, and iron condors.

What is normal volatility for a stock? ›

Volatility averages around 15%, is often within a range of 10-20%, and rises and falls over time. More recently, volatility has risen off historical lows, but has not spiked outside of the normal range.

Traders that are pessimistic like to buy put options as a hedge. This raises the IV of put options, indicating bearishness. Similarly, when traders do not protect themselves vigorously against strong market changes, their IVs fall. The majority of traders are comfortable with IVs of 20% to 25%.

On the other hand, if IV percentile in XYZ is 90%, that would indicate that implied volatility had traded below current levels 90% of the time over the previous 52 weeks. That level would therefore indicate that implied volatility was trading at the higher end of its historical range.

QQQ Option Volatility Skew

QQQ has an average implied volatility of 24.19% for options expiring Jul 24, 2024 (1 days).

The highest volatility occurs on Mondays for Germany and Japan, on Fridays for Canada and the United States, and on Thursdays for the United Kingdom. For most of the markets, the days with the highest volatility also coincide with that market's lowest trading volume.

Therefore, due to high volatility, Tuesdays, Wednesdays, and Thursdays are the best forex trading days. Midweek experiences high trading activities, while Monday is the slowest trade forex day. Fridays are the most unpredictable and thus require forex trading timings.

From the results it is observed that there is no significant difference among the return of week days. However, the results indicate that the returns are leptokurtic distribution with the presence of highest variance on Friday. This clearly indicates that the market is more volatile in Friday than any other days.

The 3-Day Rule in stock trading refers to the settlement rule that requires the finalization of a transaction within three business days after the trade date. This rule impacts how payments and orders are processed, requiring traders to have funds or credit in their accounts to cover purchases by the settlement date.