CBOE NASDAQ Market Volatility Index (VXN)

Description

The CBOE NASDAQ Market Volatility (VXN) is a measure of implied volatility, based on the prices of a basket of NASDAQ 100 Index options with 30 days to expiration.

How this indicator works

• A rising VXN indicates that traders expect the NASDAQ 100 Index to become more volatile.
• The higher the VXN, the higher the fear, which, according to market contrarians, is considered a buy signal.
• A falling VXN indicates that traders in the options market expect the NASDAQ 100 Index to trade more quietly.
• In the same respect, the lower the VXN, the lower the fear which indicates a more complacent market.

Calculation

n/a