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January 8, 2021 6:44 AM Miranda Marquit - Forbes Advisor
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January 10, 2021 7:03 AM
The CBOE Volatility Index also known as the VIX is a primary gauge of stock market volatility. The VIX volatility index offers insight into how financial professionals are feeling about near-term market conditions. Understanding how the VIX works and what it’s saying can help short-term traders tweak their portfolios and get a feel for where the market is headed.
What Is the VIX?
The VIX, formally known as the Chicago Board Options Exchange (CBOE) Volatility Index, measures how much volatility professional investors think the S&P 500 index will experience over the next 30 days. Market professionals refer to this as “implied volatility” implied because the VIX tracks the options market, where traders make