What Is the Stock Market VIX Report?
While a number of investment advisory services offer VIX reports, the term "VIX" is an acronym for the Chicago Board Options Exchange (CBOE) Volatility Index. Its ticker symbol is .VIX (or sometimes $VIX).
Other People Are Reading
-
History
-
The VIX was created in 1993 by Duke University Professor Robert Whaley. It initially measured the volatility of a handful of S&P stock options but now measures all 500 stocks in the S&P 500 Index.
Purpose
-
The VIX is a measure of implied volatility for the S&P 500 over the next 30 days. It reflects investor sentiment--fear or complacency--with respect to stock market action. It is also known as the "fear index."
-
Index Readings
-
When volatility and fear are high, the VIX gives high readings. When low, the index shows lower, more stable readings. It usually trades in a range between 20 and 30, and has an inverse relationship to the equity index. When fear spikes, the VIX index increases.
Futures, Options and ETFs
-
Futures on the VIX were introduced in 2004, options in 2006 and Barclays Global Investors also introduced an ETF that can be purchased in the same manner as a stock (ticker symbol VXN). Barclays became BlackRock in 2009.
Trivia
-
In October 1987, the VIX would have had a reading greater than 170 had it been in existence in its current format.
-
