What Is the VIX?
The VIX (CBOE Volatility Index) is a measure of the implied volatility of the S&P 500 index. It is calculated using the prices of options on the S&P 500 index that are traded on the Chicago Board Options Exchange (CBOE).
The VIX is calculated using a complex formula that takes into account the prices of a wide range of options with different strike prices and expiration dates. The formula uses a weighted average of the implied volatilities of a wide range of S&P 500 options, which reflects the market's expectation of volatility in the future.
In summary, the VIX is calculated using the implied volatilities of S&P 500 index options, which are derived from the prices of those options, to estimate the expected volatility of the S&P 500 over the next 30 days. It is often referred as the "Fear Index" because it tends to spike when investors are worried about market volatility.
The VIX is calculated using a complex formula that takes into account the prices of a wide range of options with different strike prices and expiration dates. The formula uses a weighted average of the implied volatilities of a wide range of S&P 500 options, which reflects the market's expectation of volatility in the future.
In summary, the VIX is calculated using the implied volatilities of S&P 500 index options, which are derived from the prices of those options, to estimate the expected volatility of the S&P 500 over the next 30 days. It is often referred as the "Fear Index" because it tends to spike when investors are worried about market volatility.
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