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The volatility index (vix) is a contrarian sentiment indicator that helps to determine when there is too much optimism or fear in the market. The chicago board options exchange (cboe) is an exchange used for trading standardized options contracts, including stock options, leaps, interest rate options, foreign currency options, and index options. The volatility index is a contrary indicator

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Low readings on the volatility index indicate calm What is the chicago board options exchange (cboe) When there is little volatility, traders generally lack significant levels of fear

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The vix is called 'the fear index' for a reason

The higher the fears in the market, the more traders hedge their positions with options, driving up the price of the options, therefore the price of the vix. Our simple financial goal calculator helps you calculate compound interest instantly. The stock market is quickly closing in on new highs despite looking overvalued Investors looking for clues in the cboe volatility index (vix) aren't getting much useful information

Just this month, the index has ranged from an alarming high of 21.44 to a deceptively safe low. Confidence is in short supply We'd all love to see a constant bull market (wouldn't that make retirement easier?) but as investors, you have to take the good with the bad.

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Gold is often seen as a hedge against inflation (which can be a byproduct of economic stimulus efforts during a recession) The cboe volatility index (vix), also known as the 'fear index,' can be an interesting hedge against wide swings in the markets. It is also regarded as a measure of investor fear.