CBOE's Volatility Index (VIX)
Over the last couple of years, a great deal of attention has been paid to the Chicago Board Options Exchange Computerized Investing, explains what this indicator is and how to use it. Subscribers to CI have access to a regular column called Technically Speaking that explains chart types, trendlines, and indicators such as the VIX. You can follow Wayne on Twitter @CI_Editor.Volatility Index, or VIX for short. Wayne A. Thorp, CFA, editor of
What the VIX Measures
The VIX is a measure of the implied or expected volatility of S&P 500 options over the next 30 days. Implied volatility is the market’s estimated future volatility and is reflected in the premiums paid for options.
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