CBOE Volatility Index


Also found in: Encyclopedia.

CBOE Volatility Index

A mathematical measure of the implied volatility of options trading on the S&P 500 index. That is, the CBOE Volatility Index attempts to measure the likelihood of option prices to vary unpredictably in the context of a particular pricing model in this case, the Black-Scholes model. A higher number on the index represents greater volatility, while a lower number represents lower volatility. While critics maintain that its usefulness is overstated, the index is considered a leading indicator of option volatility in the wider market. The CBOE Index is operated by the Chicago Board of Options Exchange, and is also known as the VIX.

CBOE Volatility Index

See VIX Index.
Mentioned in ?
References in periodicals archive ?
In addition, the CBOE Volatility Index is trading higher than monthly VIX futures contracts between now and May 2015, a sign of worry about near-term ups and downs in the market.
One indication that the market has 'learned' that central banks will rush to put out any economic fires and preserve stock prices, is the non-volatility of the CBOE Volatility Index VIX, Colas said.
The CBOE Volatility Index, a measure of investor anxiety, rose nearly 5% to close at its highest since June 20.
com pointed out that the CBOE Volatility Index rose to 18.
The CBOE Volatility Index, considered the fear gauge of Wall Street, fell 4.
I'm watching the 14 level closely" on the CBOE Volatility index, said Bryan Sapp, senior trading analyst at Schaeffer's Investment Research.
The CBOE Volatility Index, a barometer of investor anxiety known as the VIX, briefly fell Friday to its lowest level since July 2007.
The CBOE VIX Tail Hedge Index, a benchmark index created by Chicago Board Options Exchange (CBOE), tracks the performance of each equity security in the S&P 500 Index (with dividends reinvested) and allocates a variable percentage to a long position in a call option on the CBOE Volatility Index (VIX).
When the CBOE Volatility Index (VIX) briefly hit 50 for a few minutes earlier this month, it generated headlines around the world.
It offers trading across a diverse range of products in multiple asset classes and geographies such as options, futures, US and European equities, exchange-traded products (ETPs), global foreign exchange (FX) and multi-asset volatility products based on the Cboe Volatility Index (VIX Index), the world's barometer for equity market volatility.
The CBOE Volatility Index fell below 10 on Monday, as short positions hit a fresh record-leading to stubbornly quiet market conditions.
The CBOE Volatility Index (VIX) has been below 10% for only 11 total days in the past 20 years -- interestingly, 7 of those days have occurred since mid-May 2017.