What Is The VIX?

David Bickerton

Reviewed by

David Bickerton WSO Editorial Board

Expertise: Asset Management | Other

The VIX is an index which measures expected volatility on the S&P500 for the next 30 days. It can be traded like an asset on the Chicago Board Options Exchange. It is calculated from the trading of options for the next 30 days. For example, if a large amount of calls and puts with exercise prices a long way away from the current market prices, then the expectation is that there will be volatility and the VIX will be high.

Generally speaking a VIX higher than 30 implies high volatility whilst a VIX below 20 implies stability.

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David Bickerton

David Bickerton is a member of WSO Editorial Board which helps ensure the accuracy of content across top articles on Wall Street Oasis. Previously a Portfolio Manager for MDH Investment Management, David has been with the firm for nearly a decade, serving as President since 2015. He has extensive experience in wealth management, investments and portfolio management. David holds a BS from Miami University in Finance. This content was originally created by member WallStreetOasis.com and has evolved with the help of our mentors.