VIX futures also enable market speculators to trade volatility independent of the direction or the level of stock prices. Affairs; Insights India VIX is a short form for India Volatility Index. The VIX, too, is the highest it has been after these occurrences. The Cboe Volatility Index, or VIX, is an index created by Cboe Global Markets, which shows the market's expectation of 30-day volatility. The data goes back to 3 January 2007. The data subscription will probably be in the same package as the VIX and other CBOE volatility indices. It can also be riskier to invest in the VIX because options and futures have set expiration dates—the investor has to predict both the volatility and the timeframe in which it will reach that level. Most big market crashes are unanticipated. It is often nicknamed “the VIX of VIX”, which it is. The VIX index measures the expectation of stock market volatility over the next 30 days implied by S&P 500 index options. This page provides basic information and resources for VVIX, the “VIX of VIX”: explanation, calculation, difference between VVIX and VIX, and how to get VVIX historical and intraday data. The VIX was created in 1993 and later updated in 2003 to measure in real time the stock market’s expected volatility over the next 30 days. It is a measure of expected future volatility based on call and put options placed on S&P 500 stocks by traders (click here for our guide on how to trade options). It measures implied volatility of VIX options, applying the VIX methodology to the VIX index itself. The VIX is an index, not a financial instrument investors can buy directly. By using Investopedia, you accept our. The VIX is a measure of the expected volatility in S&P 500 index options. There is no difference in calculation. The only difference between VVIX and VIX is in the underlying of the options used for the calculation. You can get real-time data in most trading platforms of major brokers. The CBOE Nasdaq Volatility Index (VXN) tracks volatility expectations in the tech-heavy Nasdaq 100 index. View stock market news, stock market data and trading information. By remaining on this website or using its content, you confirm that you have read and agree with the Terms of Use Agreement just as if you have signed it. VXX is a volatility product designed to give investors/traders exposure to changes in the Cboe VIX Index through near-term VIX futures contracts. Traders who buy VXX are anticipating an increase in the VIX Index/futures, while trades who short VXX are anticipating a … It is very hard (probably impossible) to understand the VVIX index without a good understanding of volatility, the VIX index, and VIX derivatives. It is the volatility index that measures the market’s expectation of volatility over the near term. For this reason, the “fear gauge” nickname is a bit misleading. If you are a complete beginner, see: What Is VIX? As implied volatility rises in S&P 500 options, so too does the VIX. At the time I am writing this VVIX is not listed among the quotes on the CBOE homepage, but you can get it on the Quotes & Data page (enter “VVIX” in the search field marked “Get Quote – Enter Symbol”). VVIX is a volatility index calculated and published by CBOE. It judges the expectations of the stock market over the following 30-day period. They are traded European-style, which means they cannot be exercised before the expiration date. How Can Investors Capitalize on the VIX of VIX? © 2020 Cboe Exchange, Inc. All rights reserved. You might have heard it being referred to as the 'fear index' or 'fear gauge'. The CBOE volatility index—or VIX Index—was started in 1993. View real-time VIX index data and compare to other exchanges and stocks. Trading on VIX levels allows investors to invest in market volatility regardless of the actual direction of stock prices, and it provides an opportunity to diversify a portfolio. While sometimes referred to as the “Fear Index”, the VIX is probably more accurately be described as the “uncertainty index”. VIX of VIX (or VVIX) is a measure of the volatility of the Chicago Board Options Exchange (CBOE) Volatility Index (VIX). A VIX option is a derivative security based on the CBOE Volatility Index as its underlying asset. VIX Today: Get all information on the VIX Index including historical chart, news and constituents. VVIX is the mother of volatility. Main page of the VVIX index on CBOE website (follow the links on that page for VVIX White Paper, FAQ, and historical data): The press release announcing the introduction of VVIX (14 March 2012): ir.cboe.com/releasedetail.cfm?ReleaseID=657162. SPX has to go down from here (which equates to more shock, awe and disbelief) for VVIX to rise substantially and for VIX futures & VIX options to behave accordingly. It trades as a futures contract, and there are also options traded on this futures contract. The spreadsheet is updated every day. The VVIX is a better measure of “panic” because it shows that investors grossly misjudged the future. In 2004, VIX futures and options began trading. While the VIX index is calculated using prices of S&P500 options, the VVIX index is calculated using VIX options. The expected volatilities that influence the direction of VIX option prices with varying expiration dates, A general idea of market confidence in the VIX future values. The offers that appear in this table are from partnerships from which Investopedia receives compensation. The VVIX is often referred to as ‘the VIX of the VIX’ or ‘the vol of vol’ — that is, the volatility of volatility. Investopedia uses cookies to provide you with a great user experience. Also known as the “fear index” or the “fear gauge”, VIX essentially measures how investors are feeling about the future of the market over the next 30 days. Tail risk is portfolio risk that arises when the possibility that an investment will move more than three standard deviations from the mean is greater than what is shown by a normal distribution. Here you can find detailed step-by-step explanation of VIX calculation. The CBOE Volatility Index (VIX) is a measure of expected price fluctuations in the S&P 500 Index options over the next 30 days. In other words, it explains the annual volatility that the traders expect over the next 30 days in the Nifty50 Index. The chart bel… Alternatively, the VVIX is calculated using the implied volatility of out-of-the-money (OTM) put options in the VIX … Advanced Trading Strategies & Instruments. Delayed intraday data and chart for the VVIX index are available on CBOE website. 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