The CBOE Volatility Index (VIX) is a measure of the expected volatility of the S&P 500 Index over the next 30 days. The VIX is calculated by taking the prices of options on the S&P 500 Index and estimating how volatile they expect the market to be over the next month.
Volatility Index (VIX) Fact Sheet:
- The VIX measures volatility in the US stock market.
- It does this by tracking the prices of S&P 500 options.
- The VIX is quoted in percentage points.
- The VIX is updated every 15 seconds during market hours.
- The VIX is a popular indicator for predicting stock market crashes.
- The VIX is calculated by the CBOE.
How Does the VIX Work?
The CBOE Volatility Index, or ‘VIX’ is a measure of the expected volatility of the S&P 500 over the next 30 days. It is calculated from the prices of options on the S&P 500 index. The VIX is often called the ‘fear index’ because it tends to rise when investors are worried about market volatility.
VIX related articles:
- From the blog: Is Stock Market Volatility our New Normal? (VIX examples).
- Dictionary: What is Z-Spread (Zero Volatility).