VIX (Volatility Index)

The CBOE Volatility Index, often called the 'fear gauge,' measuring expected market volatility.

What Is the VIX?

The VIX (CBOE Volatility Index) is the market's most famous "fear gauge." It measures the expected volatility of the S&P 500 over the next 30 days, derived from options prices. When the VIX is high, the market expects big price swings. When it's low, the market expects calm.

Reading the VIX

• Below 15: Very low volatility. Markets are calm and complacent. Some contrarians see this as a warning sign.
• 15-20: Normal, healthy volatility. The typical range during stable markets.
• 20-30: Elevated volatility. Something is worrying the market — perhaps geopolitical tensions, economic data, or earnings uncertainty.
• Above 30: High fear. Associated with sharp sell-offs, corrections, or crises.
• Above 40: Panic territory. Historically rare and associated with major crises (COVID crash, 2008 financial crisis).

The VIX and Earnings

The VIX tends to rise during earnings season because the concentration of company reports creates uncertainty. Individual stock volatility also spikes before earnings — this is reflected in options premiums. On EarningsShot, the VIX context can help you understand the broader sentiment environment surrounding earnings predictions.