How Does the VIX (Or a Crypto Equivalent) Relate to the IV of ATM Options? ▴ Learn

How Does the VIX (Or a Crypto Equivalent) Relate to the IV of ATM Options?

The VIX (Volatility Index) is a real-time index that represents the market's expectation of 30-day forward-looking volatility. It is calculated using the implied volatilities of a wide range of S&P 500 options, with a heavy weighting toward ATM and NTM options.

A crypto equivalent would similarly be constructed using the IVs of ATM crypto options, making it a direct measure of ATM option IV.

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