The Volatility Index (VIX) is a volatility index developed by the Chicago Board Options Exchange (CBOE) in 1993. This indicator reflects traders' expectations on how the S&P 500 will fluctuate over the next 30 days, i.e., its implied volatility.
The indicator is calculated based on asks and bids for S&P 500 options contracts.
The index often forms clearly pronounced trends, especially when the market is very active. The index also shows how much movement there is during trading hours for one day, also known as intraday volatility. The average intraday volatility for 2020 is 14.09%.