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Do dramatic financial headlines every day drive you crazy? Forget them! Drop by Offshore Capitalist every now and then to catch the useful stuff.
Do dramatic financial headlines every day drive you crazy? Forget them! Drop by Offshore Capitalist every now and then to catch the useful stuff.
What is the VIX?
The VIX is the square root of the par variance swap rate for a 30 day term initiated today (!!).
The VIX is quoted in terms of percentage points and translates, roughly, to the expected movement in the S&P 500 index over the next 30-day period, on an annualized basis. For example, if the VIX is at 15, this represents an expected annualized change of 15% over the next 30 days.
Investors believe that a high value of VIX translates into a greater degree of market uncertainty, while a low value of VIX is consistent with greater stability.
The VIX is calculated and disseminated in real-time by the Chicago Board Options Exchange.
Click for Yahoo chart – VIX
via CBOE – Micro Site.
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