What the VIX is, and why it jumped this week
The VIX is a number published by Cboe that estimates how much the S&P 500 is expected to move over the next 30 days, based on prices of S&P 500 options. It is often…
The VIX is a number published by Cboe that estimates how much the S&P 500 is expected to move over the next 30 days, based on prices of S&P 500 options. It is often called the "fear gauge".
How to read it
The VIX is quoted in percentage points of annualized volatility. A reading of 25 implies the market expects roughly a 25% annualized swing, which works out to about 7% over a month. Its long-run average has been near the high teens to about 20.
This week
The VIX closed at 25.58 on November 6, down 9.23% on the day, after it had jumped sharply earlier in the week as stocks sold off.
What a high VIX has historically meant
Elevated readings tend to appear during stress and fade as markets settle. They describe expected volatility, not direction. The VIX can stay high while prices recover.
Using it wisely
- Treat it as a thermometer, not a prediction tool.
- Do not trade products that track the VIX unless you understand them. Many lose value over time because of how futures roll.
- Use spikes as a prompt to review your risk, not to react.
Educational content, not investment advice. Figures as reported on November 9, 2026; check primary sources before acting.
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