Glossary Detail: VIX (Volatility Index)
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The 'fear gauge' — measures expected S&P 500 volatility over 30 days. High VIX = market fear; low VIX = complacency.
Further Details:
The VIX (CBOE Volatility Index) measures the market's expectation of 30-day volatility for the S&P 500, derived from SPX option prices. Often called the 'fear gauge,' it rises when traders buy protective puts (increasing demand = higher IV = higher VIX) and falls during calm, bullish markets.