The cboe volatility index vix

Options are ignored if their bid prices are zero or where their strike prices are outside the level where two consecutive bid prices are zero.

Compare Investment Accounts. Several exchange-traded funds hold mixtures of VIX futures that attempt to enable stock-like trading in those futures.

The resulting value of standard deviation is a measure of risk or volatility. Specifications[ edit ] The concept of computing implied volatility or an implied volatility index dates back to the publication of the option valuation model by Black and Scholes in It instead is a measure of the current price of index options.

On February 24,it became possible to trade options on the VIX.

Just as a bond's implied yield to maturity can be computed by equating a bond's market price to its valuation formula, an option-implied volatility of a financial or physical asset can be computed by equating the asset option's market price to its valuation formula.