Adjacent: Macro & Assets · Adjacent
Volatility & the VIX
Wall Street's 'fear gauge': how the VIX is computed from S&P 500 options, what a reading means in expected moves, its history from 2008 to 2020, VIX futures and contango, and why short-volatility products can blow up (Volmageddon 2018).
Step 1 of 6 · Overview30 min read ·
Key idea
Prereqs: Black–Scholes & the Greeks; Options basics. Next: Macro for traders. Sources: Cboe VIX white paper, Charles Schwab education, Natenberg's *Option Volatility and Pricing*.Not investment advice. Education only; these instruments can lose money quickly.
Next: 1. What the VIX measures