CBOE Volatility Index
Definition
The CBOE Volatility Index (VIX), often called the 'fear gauge' or 'fear index,' is a real-time market index that represents the market's expectations for the relative strength of near-term (30-day) price changes of the S&P 500 Index, derived from the prices of S&P 500 index options.
Created by the Chicago Board Options Exchange (CBOE), it measures implied volatility and is widely used by investors to gauge market sentiment, with higher values indicating greater expected volatility or uncertainty.
Examples
The CBOE Volatility Index spiked to 40 today, turning Wall Street suits into nail-biters faster than a horror movie marathon.
With the CBOE Volatility Index chilling at 12, traders are lounging like it's a market spa day.
Ignore the CBOE Volatility Index at your peril; it's the market's way of whispering 'buckle up' before the rollercoaster drops.
As the CBOE Volatility Index flatlined, even the algo bots started questioning their life choices.