Frequently Asked Questions

What is it?

• The Chicago Board Options Exchange Volatility Index (CBOE VIX) measures annualized implied volatility conveyed by S&P 500 stock index option prices. The indicator value reflects a month end reading of the trailing daily average for the month.

Why is it important?

• Considered a key measure of market expectations of near-term volatility.

How do we interpret it?

• An increasing VIX represents an increase in investor uncertainty about the near-term direction of the market. A decreasing VIX suggests the opposite.

Typical historical range

• As of December 31, 2024, +/- 1 standard deviation* of historical month-end values have ranged from 12.45% to 27.55%.¹