The Volatility Index (VIX) measures the market’s expectation of short-term volatility based on option prices on the S&P 500. It is expressed as an annual percentage and is sometimes referred to as an “investor fear indicator.” VIX, created by the Chicago Board Options Exchange (CBOE) in 1993, is the Volatility Index. Measures the market’s expectation […]

VIX is the volatility index created by CBOE in 1993, measuring market expectations of short-term volatility through the prices of S&P 500 stock index options. It uses the Black-Scholes options pricing model to calculate implied volatilities and is expressed as an annual percentage. VIX is sometimes referred to as an “investor fear indicator,” but it […]