What Is the VIX?
The VIX is an index that shows how much traders expect the S&P 500 to swing over the next 30 days. It is often called the market's fear gauge.
How the VIX works
It is calculated from the prices of S&P 500 options. When investors are nervous, they pay more for protection, option prices rise, and the VIX goes up.
What VIX levels mean
- Below about 15: calm markets.
- Around 20: normal.
- Above 30: fear and big swings.
- Above 40: panic, seen during crashes like 2008 and 2020.
VIX and stocks move opposite
When stocks fall sharply, the VIX usually jumps. When markets are calm and rising, it drifts down. It measures expected volatility, not direction.
See it in real companies
Open a company to see what it sells and how it makes money.