What Is the VIX? The Market's Volatility Gauge Explained

The Cboe Volatility Index® (VIX® Index) is a leading measure of market expectations of near-term volatility, conveyed by S&P 500 Index® (SPX) option prices. Since its introduction in 1993, it has been widely considered the world's premier barometer of investor sentiment and market volatility. What is volatility? Volatility measures the frequency and magnitude of a financial instrument's price movements — up and down — over a given period. The more dramatic the price swings, the higher the volatility. It can be measured from actual historical price changes (realized volatility) or as expected future volatility implied by option prices. The VIX Index measures expected future volatility. How is the VIX Index calculated? The VIX Index estimates that volatility by aggregating the weighted prices of S&P 500 Index (SPX℠) puts and calls across a wide range of strike prices, using the midpoints of real-time SPX option bid/ask quotes. Learn more about VIX products: https://bit.ly/4cDk5Yd