Summary

Introduction
The VIX Index Calculation
The Relationship of the SPX and the VIX Index
Nature of Option Trading and the VIX Index
VIX Futures and Options
Summary

Summary

The VIX^® index has emerged as the industry standard for a measure of expected market volatility. Market observers pay close attention to the VIX index, hoping to gain clues about investor sentiment and market direction.

With the introduction of VIX futures contracts at CFE and VIX options contracts at CBOE, the door to trading an opinion on implied volatility has been opened.