CBOE Volatility Index (VIX)

A measure of expected stock market volatility over the next 30 days based on S&P 500 index options prices. Higher options prices signal fear, pushing the VIX up; lower prices suggest stability, bringing the VIX down. A common contrarian approach is to buy when fear is high (the VIX spikes) and be cautious when complacency dominates (the VIX is low). Using the VIX as part of a broader investing strategy—whether for risk management or identifying opportunities—can help investors navigate uncertainty.