The Cboe Volatility Index, or VIX, is a real-time market index representing the market's expectations for volatility over the coming 30 days | The index is more commonly known by its ticker symbol and is often referred to simply as "the VIX |
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On September 27, 2018, shares of Texas Instruments Inc | Create a personalised content profile |
The tighter relationship could very well be attributed to the various products introduced over the past 10-15 years which allow market participants to trade the VIX.
29These choices will be signaled globally to our partners and will not affect browsing data | The above stock-specific example of TXN and LLY can be extended to sector-level or market-level |
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This process in recent years has become exasperated, in all likelihood, because the VIX has gone from just a market gauge of volatility to a tradable asset class through product offerings on various futures, equities, and options exchanges | This happens because of the long-term bullish bias of the stock market and the fact that the VIX is calculated using implied volatility |
Like all indexes, one cannot buy the VIX directly | To change or withdraw your consent choices for Investopedia |
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At the most basic level the VIX index is constructed using weekly and traditional SPX index options and their levels of implied volatility | Leveraged trading in foreign currency or off-exchange products on margin carries significant risk and may not be suitable for all investors |
" In 1992, the CBOE hired consultant Bob Whaley to calculate values for stock market volatility based on this theoretical work.
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