Past Panic Is No Guarantee of Future Hysteria as VIX Jumps 32%
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The financial press likes to refer to the VIX as the market’s “fear gauge.”
That’s probably because it fits headline spaces a lot better than “an index that reflects a market estimate of future volatility based on the weighted average of the implied volatilities for a wide range of strikes, with first and second month expirations used until eight days from expiration, at which point the second and third month contracts are used.”