Purchasing an umbrella in the rain is often more expensive than while the sun shines. Portfolio insurance carries many of the same characteristics.
As market participants ring the all clear bell, we happily enjoy the fruits of their efforts as portfolio insurance has become cheaper, due in most part to the continued downward path of the CBOE Volatility Index or VIX.
The VIX, a measurement of fear, also has a directly influence on the option prices we have mentioned in many of our educational series.
We are not calling for rain, however if an umbrella was needed during the last storm, now is a better time to make the purchase than during the storm.
Have a Great Day!
PS Getting Closer to our Special Private Client Event in late April !