How Is the VIX Calculated Using S&P 500 Options? ⎊ Path

How Is the VIX Calculated Using S&P 500 Options?

The VIX is calculated by taking a weighted average of the implied volatilities of a wide range of out-of-the-money (OTM) call and put options on the S&P 500 Index (SPX). It uses a formula to derive a measure of the expected volatility over the next 30 days, interpolating between two near-term option expiration dates.

The VIX is expressed as an annualized percentage, representing a one-standard-deviation move expected by the market. It is a continuous measure of the market's fear or complacency.

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

How Is ‘Volume-Weighted Average Price’ (VWAP) Used as a Benchmark for Trade Execution?

How Is the VIX Calculated from a Basket of Options?

How Does a Volume-Weighted Average Price (VWAP) Calculation Differ from a Simple Average?

What Is the Significance of the VIX Index in Relation to Implied Volatility and Market Risk?

What Is the “VIX” Index and How Does It Relate to Implied Volatility?

How Does the VIX Index Relate to IV in the Traditional Market?

What Is the Relationship between the VIX Index and Implied Volatility?