Atlas Macro

Markets

VIX (Volatility Index)

An index from Cboe that measures the volatility markets expect in the S&P 500 over the next 30 days, calculated from options prices.

Key points

  • Called the "fear gauge" of markets.
  • Typically inversely correlated with stocks.
  • Above 30 indicates high fear, below 15 is complacency.

Example

A jump in VIX from 14 to 28 in two sessions often pairs with a 5–10% equity drawdown and wider credit spreads.

In history

VIX hit 82.7 in March 2020 during the COVID crash and stayed mostly below 15 through much of 2017, illustrating regime shifts in volatility.

Related terms