How is the VIX calculated? The VIX’s calculation is based on the prices of S&P 500 options. Options can be seen to represent an investor’s estimate of where the S&P 500 will be in the near future. Call options (or calls) are expectations that the index will rise, while put options...
Generally speaking, if the VIX index is at 12 or lower, the market is considered to be in a period of low volatility. On the other hand, abnormally high volatility is often seen as anything that is above 20. When you see the VIX above 30, that’s sometimes viewed as an indication th...
The Chicago Board of Options Exchange Market Volatility Index (VIX) is a measure of implied volatility, based on the prices of a basket of S&P 500 Index options with 30 days to expiration.
The CBOE Volatility Index, or VIX, is an index that shows the stock market’s expected 30-day volatility. It is important to understand that the VIX allows investors to watch the volatility of the stock market easily.
Known in the financial press as the “fear index” or “fear gauge,” the VIX can be traded against, but it also provides active investors with an idea whether a stock they own or want to own (or perhaps want to sell) might present an opportunity to trade in the short run. For the...
Lauren Rublin: All right, we'll leave it there. But let's move on with the show. That's what we're doing to celebrate here. So based on the price action, as I noted, it is a very worry-free market. Yet if you look at the CBOE Volatility Index or ...
It is often referred to as the “fear index.” Haworth says the VIX rising into the 20+ range indicates weaker market sentiment. The gauge peaked above 27 just before the market fell into correction territory. After briefly retreating prior to the latest tariff announcements, the VIX Index ...
It becomes this feedback loop that goes on as the trade unwinds. You get what you saw on that Monday, which was this huge spike in volatility, just absolutely massive with the VIX going up above 50 in one day from a much more muted level. You saw that in just ...
The VIX, Wall Street’s fear gauge, surged Tuesday to its highest level this year before retreating. While US stocks might be stretched, global markets are shining. Europe’s STOXX 600 Index has gained almost 10% this year. In China, equities continue to outperform the US. ...
The Bottom Line Sentiment plays a big role in decision making for the stock markets, and to that extent, it could be a good idea to glance at the VIX. However, the index is far from perfect, and investors should consider how much weight they want to peg on it....