VIX Index Explained | Options Trading Guide

The CBOE's VIX Index is one of the most commonly watched indices in the market, as it tracks the 30-day implied volatility of options on the S&P 500 Index (SPX).

The VIX can be used to select strategies that are appropriate for that market environment, and also to calculate expected market ranges in the future.

In this video, we show the relationship between the VIX Index and the S&P 500 Index (SPX), as well as historical VIX Index levels.

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[coopermagee]

I have to say, that, your videos are far better than any other financial videos on YouTube. I am impressed by the way you present the information and how you walk the viewer through the technical formulas. Well done, and please make more videos. Thank you.

[samuimuscle]

Well done, again you made me understand VIX index within 23 minutes. Very impressive! Thanks a lot.

[rafaii]

My friend asked to look at this, I must say. I am impressed. Thank you.

[AdamMangione]

Good video. I like your clear, methodical approach to explaining finance matters.

[ronaldvaughn]

Great !! Video, Very Precisely, Illustrated, Broken Down & Explained, I Really Appreciated This & Learned Alot About The ( Vix Index ): In A Very Short Time

[fxkagisowilliansechogo]

I honestly need to understand option trading...

Been reading the book called index trading course .
curiousity lead me to your channel

[jatindersodhi]

very well explained... complex concepts laid out clearly ... good work

[alaughtale]

Great video man loved the explanation...doubts I had are gone now

[milersgunner]

If the market is booming, wouldn’t call prices start becoming expensive, causing the vix to rise too?

[franksaparetoiii]

If VIX is 30-day implied volatility, then to get an annualized expected change in the S&P, shouldn’t you use the last 12 months of VIX numbers to find an average and then use that to determine the expected 1-year $ move?

[jesse]

Is the 68% probability figure used for all SPX/VIX cases or just the SPX 2000/VIX at 50 example used? If the latter, what is the formula to calculate the 68% probability?

[tirath]

In another vedio u said that option prices drive implied volatility and IV then drive stock prices now u saying other way around which one is it .I'm not trying to call u out I'm confused bother explaining pls

[borets]

Can you please explain why VIX represents a one-year range and not a 30-day range since we're using 30-day options to calculate it?

[femipaul]

I wish I paid attention during maths call .. are you still responding to comments in this vid ?

[nnrq]

So options are just more expensive when the vix is high and cheaper when the vix is low?And is it better to trade options when the vix is high or low or does it just come down to cost?

[keshavsrivastava]

Don't get one thing. How can VIX be lower when market rises in a steep way? After all, VIX is dependent on option prices. And a steep rise in market will also increase option prices, which shall increase VIX too.
In your VIX vs S&P 500 chart also, VIX was high when the S&P 500 made a V-shaped recovery.
So why do you say a rising market calls for lower VIX?

[christophernyman]

Historical VIX Levels Percentile(Bellow) 1990 to present. 90% below 28.9475% below 23.0550% below 17.8225% below 14.0210% below 12.22 How could I go about finding the same statistics but in different time spans? Let's say I would like to know how big % VIX has been below 15 from 2019-2020. Are there any good indicators or tools to do this for me?

[rajkishoregutta]

what happens when index falls and also VIX falls. From here onwards

does market rises or falls into a range.

[kizz]

So when VIX is high, even call options getting more expensive?

[kymecyi]

The vix index is a gross volatile market, one can’t be too sure of his entry, that’s why I explain how to earn in real time, and help navigate you to financial freedom