The range of the VIX, or the Chicago Board Options Exchange Volatility Index, is typically between 10 and 80. Here's a breakdown of the VIX range and its implications:
- Low to Medium Volatility: When the VIX is between 10 and 20, it is typically considered to be in a low to medium volatility range. This suggests that the market is relatively calm and confident, with low expectations of future volatility1.
- High Volatility: When the VIX is between 20 and 40, it is typically considered to be in a high volatility range. This suggests that the market is experiencing heightened uncertainty and fear, with expectations of increased volatility in the near future1.
- Very High Volatility: When the VIX exceeds 40, it is typically considered to be in a very high volatility range. This suggests that the market is extremely uncertain and fearful, with expectations of significant volatility in the near term1.
- Historical Extremes: The VIX has historically ranged from a low of 9.14 in November 2017 to a high of 82.69 during the COVID-19 pandemic in March 20201. These historical extremes provide context for understanding the current level of volatility and uncertainty in the market.
It's important to note that the VIX is a measure of implied volatility and is based on option prices, so it is not directly related to the actual volatility of the market. However, it is a widely used indicator of market sentiment and is often used to gauge the level of fear or uncertainty among investors.
9/3/2024 07:52pm
