VIX: What Is the CBOE Volatility Index?

What Is the CBOE Volatility Index (VIX)?

By Robin Hartill, CFP – Updated Aug 7, 2025 at 6:00 PM EST

Key Points

VIX measures expected S&P 500 volatility, aiding short-term market outlooks.
VIX surges hint at investor anxiety, predicting possible market drops.
Though insightful, VIX often overestimates actual market volatility by 4-5%.

The Chicago Board Options Exchange Volatility Index, or VIX, is an index that gauges the volatility investors expect in the U.S. stock market. The index doesn’t reflect current or recent stock volatility. Rather, it’s a leading indicator that measures the level of stock market volatility expected by investors. In this article, we’ll delve into what the VIX measures, how it’s calculated, and whether you should use it in your investment decisions.

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VOLATILITYINDICES: ^VIX

CBOE S&P 500 Volatility Index

Today's Change

(-0.37%) $-0.10

Current Price

$27.19

Key Data Points

Day's Range

$24.67 - $28.47

52wk Range

$13.47 - $52.33

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The VIX is calculated using average weighted real-time call and put prices across the S&P 500 index with an expiration date of between 23 and 37 days out. The result gives you the implied 30-day volatility of the S&P 500 index. Because the S&P 500 index represents about 80% of the value of U.S. stocks, the VIX is used as a gauge of uncertainty in the overall U.S. stock market.

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About the Author

Robin Hartill, CFP, is a contributing writer at The Motley Fool. Robin’s work has also been published by Yahoo Finance, USA Today, and Penny Hoarder. She is a graduate of the University of Florida.

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Robin Hartill has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.