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.