What is the VIX index?
The VIX index, formally known as the CBOE Volatility Index, is a popular measure of market expectations of near-term volatility conveyed by S&P 500 stock index option prices. It is often referred to as the “fear gauge” or “fear index” because it tends to rise when investors are fearful or uncertain about the market’s future direction. Here are some key points about the VIX index: Definition The VIX measures market expectations of 30-day volatility for the S&P 500 index, derived …