VIX is the ticker symbol for the Chicago Board Options Exchange CBOE Volatility Index, which shows the market's expectation of day volatility. This volatility is meant to be forward lookingis calculated from both calls and puts, and is a widely used measure of market riskoften referred to as the "investor fear gauge.

Following the CBOE's lead, two other variations of volatility indexes have since been created: The VIX, however, was the first successful attempt at creating and implementing a volatility index.

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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.

The CBOE combines the price stock broker school los angeles multiple options and derives an aggregate value of volatility, which the index tracks. While there eli5 stock options not a way to directly trade the VIX, the CBOE does offer VIX options, which have a value based on VIX futures and not the VIX itself.

Additionally, there are 24 other volatility exchange-traded products ETPs for the VIX, bringing the total number to Movements of the VIX are largely dependent on market reactions. The spike in the VIX came about due to a global sell-off of U.

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This means global investors saw uncertainty in the market and decided to take gains or realize losses, which caused a higher aggregate equity supply and lower demand, increasing market volatility. Eli5 stock options Term Of The Day.

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