Volatility on Stock Indexes
CBOE Holdings has created a suite of volatility benchmark indexes based on all of the major U.S. broad-based stock indexes, including:
The VIX Index methodology is applied to the options prices of the respective underlying index to measure the market expectations of near-term volatility, creating a "VIX Index" for each sector, i.e. technology stocks reflected in the NASDAQ-100; small cap stocks tracked by the Russell 2000; or the benchmark of the overall U.S. stock market, the S&P 500.
CBOE Holdings also offers volatility benchmark indexes that track different time horizons such as 9-day, 3-month and 6-month periods and offers tradable options and futures contracts on several of these volatility benchmark indexes.