Cboe began publishing the Cboe Volatility Index (VIX Index) in April 1993. As part of our month-long celebration, we’re putting together special content highlighting the index.

On Monday, we shared the 1993 press release announcing the real-time dissemination of the VIX Index. The April 1993 release ends by noting the 20th anniversary of Cboe, meaning this month, we’ll celebrate the company’s 45th anniversary!

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On Tuesday, we shared “Cboe VIX: By the Numbers,” which highlighted the various closing levels of the VIX Index since inception. The VIX Index has closed at more than 2,000 different prices, ranging from 9.14 to a high of 80.86 in November of 2008. This week, it has been in the 18 to 24 range. Understanding the various VIX Index closing levels throughout the years helps put current levels into perspective.

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Some of the staff at Cboe have children around the same age of the VIX Index – making it a part of the millennial generation. Millennials are considered tech-savvy and innovative. The VIX Index may be 25 years young, but it has spurred the growth of numerous financial products based on the concept of trading volatility in markets.

So how does one use the VIX Index? See below for the answer:

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Speaking of tech-savvy, this week, Cboe launched a new VIX Index webpage to help users “turn volatility to your advantage.” Check it out at www.cboe.com/vix.

Over the last 25 years, the Index has grown to become the world’s accepted measure of market volatility, relied upon by all kinds of market participants, observers and reporters. Today, investors around the world are using the VIX options and futures marketplace to hedge portfolios against market downturns, manage portfolio risk and smooth out volatility. 

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On Friday, we “flashed-back” to a Chicago Tribune article about the press conference in January of 1993 unveiling Cboe’s new index of market volatility. In it, Cboe leaders predicted the VIX would “give users of CBOE products the most accurate barometer yet of stock market volatility.”

The growth of VIX and volatility trading has been an amazing story. We hope you will join us in celebrating the past, present and future of VIX by following our story at #VIX25 on Twitter or by keeping tabs on this blog at www.cboe.com/blogs/vix. There’s more surprises to come throughout the month…