What is the average VIX index value? Mean vs Median vs Mode

The VIX index is the most widely used and quoted volatility index in the world, but how many people really understand it? I so often hear people say the long-term average VIX index value is 20. Well that depends on what type of average we are using right? There is a huge difference between the mean, median, and mode, and with the VIX that really matters!

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Brent Osachoff, volatility trading strategies, VTS, vts options, volatility trading, Volatility ETPs, options trading, investing, stock market, VIX, VXX, UVXY, VIX trading, vix strategy, vix options, vxx options, risk management, tactical investing, stock market

[VolatilityTradingStrategies]

I respond to comments so feel free to ask questions!

[nathanw]

Yes please make videos on your articles. I learn best through listening so your videos are super helpful. I recently subscribed to your newsletter and have to say you are probably one of the best investors in the world. You are absolutely amazing!

[PeteLaric]

Sweet SM7B! I see you've taken your audio game to the next level. An oft overlooked (but important) aspect of video production. I remain in awe of your production quality, sir. Please keep up the excellent work! I deeply appreciate how generously you share your wisdom.

[tomiskind]

Thanks Brent, good insights. Reminds me of ranking implied volatility with IVR (middle of total range) and IV%R (mean as described here, center of all occurrences which I prefer). Looks like 13 more of a tipping point then. Speaking of averages, for SPX/SPY only I find inverted VIX with 10 period simple moving average useful. Keep smiling!

[jsullivan]

It then appears that current vol levels remain somewhat elevated compared to historical mean/mode levels. Interesting that the financial press and YouTube chart watchers are currently laser focused on the 20 level. As if there’s something magical about that level (beyond it being support/ resistance) -- below is an all clear and above is a run for hills! The more I read your blogs and watch your videos, the more I realize that the area of market volatility is quite misunderstood . Thank you, from a grateful member of the community.

[markintheadirondacks]

This is an important insight on the "average VIX". The very best VIX trades that I've ever made have always been long at 9.

[Marius-jbjh]

What do you think about selling one naked put on QQQ at 1SD 45-60 days and hedge with VIX calls. Can be a strategy like this profitable and safe long term ?

[mohammadrahmaty]

Do you think the average of VIX can change by factors such as population through time? (more people, more interactions, more volatility)

[FreeMarketSwine]

Probably one of my favorite videos that you've put out. Simple, but the volatility theory stuff is always great.

[michaeldouglas]

Make'em until the views fall off the Mode. Or Median. Er... or Mean.