CBOE

This 'Fear Trade' Could Bring You 87% Gains

Fear is in the air on Wall Street. Unemployment is high, housing sales are sluggish and the dollar is weak. Now, to add insult to injury, Standard & Poor's has lowered its U.S. debt outlook to negative, putting the nation's AAA credit rating at risk. Fortunately, smart traders can benefit from these worries.

Some Stocks That May Be Hidden Gems

While most investors try to follow bubbles or pick over popular stocks for a little bit of profit, these undervalued companies may be poised for a bit of growth.

Lower Volatility Might Not Signal a Market Correction

The CBOE's Volatility Index, known as the VIX, has been trending lower, which many analysts consider a sign that stocks are due for a fall. But another argument says it's all relative, and in today's environment a lower VIX may suggest a continuing rally.

Reading the VIX: What the 'Fear Index' Is Saying Now

After spiking in May on dismay over Eurozone debt anxiety, the VIX has been trending generally downward, with any jumps being only short-lived. Another spike just occurred. The thing to watch now is if the VIX follows this recent pattern -- or not.