VIX Volatility Index

This chart plots the CBOE Volatility Index — the VIX — as a daily close over the last three years, from the FRED series named under the chart. The VIX is not a survey and not a model output: it is the 30-day volatility implied by the prices investors are actually paying for S&P 500 options right now. The page refreshes hourly from the live data and shows the current reading with the trailing 90-day change.

The VIX is called the fear gauge because of what options are for. When investors expect calm, protection is cheap and the index sinks; when they expect trouble, they bid up protection and the index spikes. A rising VIX means the market is paying more for insurance — it is fear measured in dollars rather than adjectives. A falling VIX means the bid for protection is receding.

For US equities the relationship is nearly mechanical in the short run: volatility spikes when stocks fall, because falling prices are exactly what the insurance protects against. The informative cases are the divergences — a VIX that refuses to fall while stocks rally, or one that starts rising while stocks are still near highs. Both have historically marked unease underneath a calm surface.

The caveats: the VIX is an expectation, not a prophecy — it measures what protection costs, not what will happen. This page shows the spot index only, a single daily close, not the futures term structure professionals read for stress. And low readings can persist for years: a quiet VIX is complacency only in hindsight.