Stock Term – VIX
February 6, 2009 at 2:25 pm · Filed Under Terminology
According to Wikipedia:
VIX is the ticker symbol for the Chicago Board Options Exchange Volatility Index, a popular measure of the implied volatility of S&P 500 index options. A high value corresponds to a more volatile market and therefore more costly options, which can be used to defray risk from volatility.
The VIX can be used for a lot of things, but I usually use it as a complementary indicator to volume. A declining VIX often means a consolidation period, and an increasing VIX often means an accumulation or distribution period. You can find the chart for it here, but it’s available on pretty much every stock site.
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