VIX Volatility Index

VIX means Volatility Index. CBOE introduced the VIX first in 1993, it was weighted measure of the implied volatility of eight S&P 100 at-the-money put and call options. Ten years later, it expanded to use options based on a broader index, the S&P 500, which allows for a more accurate view of investors' expectations on future market volatility. Generally VIX values 30 or more than 30, VIX associated with a large amount of volatility as a result of investor fear or uncertainty, while values below 20 generally correspond to less stressful, even complacent, times in the markets.