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.
Related Articles:
- The VIX Index: Instant Access to the World’s ‘Best Contrarian Indicator’
- Fast and Furious Volatility is Back in a Big Way: How To Profit Using The VIX & Leg Spreads
- Implied Volatility: The Impact of Beta on Your Option Positions
- Understanding Options Risk: How to Beat the "Volatility Premium" on Options
Related Terms:
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