CBOE volatility index (VIX) - RICH TV LIVE

CBOE volatility index (VIX) - RICH TV LIVE - May 10, 2022 - #cboe #vix #richtvlive #money #business #news #finance #stockmarket #stocks #trading #investing #richtv #rich #sell

The VIX Index is a calculation designed to produce a measure of constant, 30-day expected volatility of the U.S. stock market, derived from real-time, mid-quote prices of S&P 500® Index (SPX℠) call and put options. On a global basis, it is one of the most recognized measures of volatility -- widely reported by financial media and closely followed by a variety of market participants as a daily market indicator.

In 1993, Cboe Global Markets, Incorporated® (Cboe®) introduced the Cboe Volatility Index® (VIX® Index), which was
originally designed to measure the market’s expectation of 30-day volatility implied by at-the-money S&P 100® Index (OEX®
Index) option prices. The VIX Index soon became the premier benchmark for U.S. stock market volatility. It is regularly
featured in the Wall Street Journal, Barron’s and other leading financial publications, as well as business news shows on
CNBC, Bloomberg TV and CNN/Money, where the VIX Index is often referred to as the “fear gauge.”
Ten years later in 2003, Cboe together with Goldman Sachs, updated the VIX Index to reflect a new way to measure
expected volatility, one that continues to be widely used by financial theorists, risk managers and volatility traders alike.
The new VIX Index is based on the S&P 500® Index (SPXSM), the core index for U.S. equities, and estimates expected volatility
by aggregating the weighted prices of SPX puts and calls over a wide range of strike prices. By supplying a script for
replicating volatility exposure with a portfolio of SPX options, this new methodology transformed the VIX Index from an
abstract concept into a practical standard for trading and hedging volatility.
In 2014, Cboe enhanced the VIX Index to include series of SPX WeeklysSM. First introduced by Cboe in 2005, weekly options
are now available on hundreds of indexes, equities, ETFs and ETNs and have become a very popular and actively-traded
risk management tool. Today, SPX Weeklys account for one-third of all SPX options traded, and average close to 350,000
contracts traded per day1
.
The inclusion of SPX Weeklys allows the VIX Index to be calculated with S&P 500 Index option series that most precisely
match the 30-day target timeframe for expected volatility that the VIX Index is intended to represent. Using SPX options
with more than 23 days and less than 37 days to expiration ensures that the VIX Index will always reflect an interpolation of
two points along the S&P 500 volatility term structure.
Cboe began dissemination of the VIX Index outside of U.S. trading hours in April 2016. The VIX index is now available
during “extended trading hours” between 3 a.m. and 9:15 a.m ET, as well as during regular trading hours between 9:30
a.m. and 4:15 p.m. ET. As part of the VIX Index expansion, Cboe implemented a smoothing algorithm for VIX Index values
disseminated during both extended and regular market hours.

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