Volatility Quick Facts
- What Is Volatility: How much a stock price swings. Higher = riskier.
- Normal Range: S&P 500 = 15-20% | Tech stocks = 30-50% | Bro Billionaire = 50-85%
- Wildest Stock: Tesla (85% annualized volatility) - can swing ±8% per day
- Calmest Stock: Microsoft (34% volatility) - moves ±3% per day
- VIX Alert: When VIX >30, Bro Billionaire stocks drop 50-70%
Live Volatility Dashboard
VIX Fear Index
Understanding Volatility Metrics
1. Annualized Volatility (Historical)
Measures actual price swings over the past year. Formula: standard deviation of daily returns × √252 (trading days). Example: Tesla's 85% volatility means it typically gains or loses 85% per year, or ±5.4% per day.
2. Implied Volatility (IV)
Market's forecast of future volatility, derived from options prices. High IV = expensive options = market expects big moves. Warning: When IV spikes above 100%, prepare for violent swings.
3. Beta
How much a stock moves relative to the S&P 500. Beta 2.0 = stock moves 2x as much as market. Example: If S&P drops 5%, Tesla (beta 2.1) drops ~10.5%.
4. Max 1-Day Move
Largest single-day gain or loss in past year. Shows downside risk. Tesla's ±12% means you could lose $12,000 on a $100k position overnight.
VIX Alert Levels
| VIX Level | Market State | Bro Billionaire Impact | Action |
|---|---|---|---|
| VIX <15< /td> | Calm | +5% to +10% monthly | BUY - volatility is low, stocks grind up |
| VIX 15-25 | Normal | ±3% weekly | HOLD - typical volatility, stay course |
| VIX 25-35 | Elevated Fear | -10% to -20% drawdowns | CAUTION - reduce leverage, hedge |
| VIX >35 | Panic | -30% to -60% crashes | BUY if brave, HOLD if scared |
FAQ
Is high volatility bad?
Not inherently. High volatility = high risk AND high reward. Tesla's 85% vol delivered +1,247% returns over 5 years. S&P 500's 20% vol delivered +87%.
How can I profit from volatility?
Buy the dip: When VIX >30, Bro Billionaire stocks are on sale.
Sell
options: High IV = expensive premiums. Sell cash-secured puts.
Hold
cash: 10-20% cash allocation lets you exploit volatility spikes.
Should I avoid high-volatility stocks?
Only if you can't stomach 50%+ drawdowns. If you panic-sell during crashes, stick to low-volatility stocks (MSFT, AAPL) or index funds.
Volatility Is The Price of Admission
Bro Billionaire stocks are 2-3x more volatile than the S&P 500. That volatility creates the 10x returns. Accept it or buy an index fund. There's no middle ground.
Track Volatility. Expect Chaos. Profit From Fear.