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Volatility Index: Difference between revisions
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The Volatility Index was introduced by the [[Chicago Board Options Exchange|Chicago Board Options Exchange (CBOE)]] in 1993. It is constructed using the implied volatilities of a wide range of S&P 500 index options. The VIX is a measure of expected future volatility. It is often referred to as the "fear gauge" or "fear index" as it is a proxy for the market's expectation of stock market volatility over the next 30-day period. | The Volatility Index was introduced by the [[Chicago Board Options Exchange|Chicago Board Options Exchange (CBOE)]] in 1993. It is constructed using the implied volatilities of a wide range of S&P 500 index options. The VIX is a measure of expected future volatility. It is often referred to as the "fear gauge" or "fear index" as it is a proxy for the market's expectation of stock market volatility over the next 30-day period. | ||
[[Image:Detail-145511.jpg|thumb|center|A line graph showing the fluctuations in the Volatility Index over a period of time.]] | [[Image:Detail-145511.jpg|thumb|center|A line graph showing the fluctuations in the Volatility Index over a period of time.|class=only_on_mobile]] | ||
[[Image:Detail-145512.jpg|thumb|center|A line graph showing the fluctuations in the Volatility Index over a period of time.|class=only_on_desktop]] | |||
== Calculation of the Volatility Index == | == Calculation of the Volatility Index == | ||