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Glossary of Option Terms: The VIX

The VIX

Definition: Ticker symbol for the CBOE Volatility Index.  Referred to as "the investor fear gauge," it was introduced in 1993 to measure the volatility of the S&P 100; 10 years later was expanded to cover the broader S&P 500, allowing for a more accurate view of future volatility within the market.  Values greater than 30 show investor fear or uncertainty, and below 20 are associated with less stressful times in the market.

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