What is the 'VIX  CBOE Volatility Index'
The VIX (CBOE volatility index) is the ticker symbol for the Chicago Board Options Exchange (CBOE) Volatility Index, which shows the market's expectation of 30day volatility. It is constructed using the implied volatilities of a wide range of S&P 500 index options. This volatility is meant to be forward looking and is calculated from both calls and puts. The VIX is a widely used measure of market risk and is often referred to as the "investor fear gauge."
There are three variations of volatility indexes: the VIX tracks the S&P 500, the VXN tracks the Nasdaq 100 and the VXD tracks the Dow Jones Industrial Average.
BREAKING DOWN 'VIX  CBOE Volatility Index'
The first VIX, introduced by the CBOE in 1993, was a weighted measure of the implied volatility of eight S&P 100 atthemoney put and call options. Ten years later, it expanded to use options based on a broader index, the S&P 500, which allows for a more accurate view of investors' expectations on future market volatility. VIX values greater than 30 are generally associated with a large amount of volatility as a result of investor fear or uncertainty, while values below 20 generally correspond to less stressful, even complacent, times in the markets.

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What is the CBOE Volatility Index? (VIX)
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What is the relationship between implied volatility and the volatility skew?
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Why is the Chicago Board Options Exchange important?
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What is an option's implied volatility and how is it calculated?
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