

The VIX, or CBOE Volatility Index, is a measure of market volatility calculated using S&P 500 Index options price data.12 It is often referred to as "the fear gauge." The VIX is currently below its historical average of between 19 and 20, indicating relative calm among investors.2 However, the put/call ratio for the VIX is currently around 1.49, which is at the upper end of its 2023 range.23 This suggests that traders are increasing their bets on market volatility, potentially indicating uncertainty bubbling below the surface of a buoyant market.2
The put/call ratio chart shows the ratio of open interest or volume on put options versus call options.24 A high put/call ratio can be an indicator of investor uncertainty or fear.24 Investors traded an average of 850,000 VIX options contracts per day in June, the most since March 2020 when they exchanged an average of 1.1 million contracts a day.2 This indicates that more traders are placing bets on market volatility than at any point since the outbreak of COVID-19.2
The VIX is currently below its historical average of between 19 and 20, indicating relative calm among investors.2 However, the put/call ratio for the VIX is currently around 1.49, which is at the upper end of its 2023 range.23 This suggests that traders are increasing their bets on market volatility, potentially indicating uncertainty bubbling below the surface of a buoyant market.2
