The VIX is the options market's own forward-looking estimate of expected S&P 500 volatility over the next 30 days, implied from real option prices rather than historical price movement.
CBOE computes it from a weighted strip of out-of-the-money S&P 500 put and call option prices across near-term expirations, then annualizes the result: a VIX of 20 means the options market is pricing in roughly a 20% annualized move, up or down, over the next 30 days.
Rough bands: below 12 is complacency, 12-20 is calm, 20-30 signals stress, and above 30-35 marks acute fear or panic (2020 and 2008 both pushed the VIX above 60). None is a hard trigger by itself — Quantustik treats the VIX as one input to the broader Market Conditions score.
Not automatically — a high VIX means the market expects bigger swings in either direction, not necessarily a decline.
Not the index itself, but VIX futures, options, and VIX-linked ETPs let traders take a position on expected volatility, with their own risks (notorious value decay in calm markets).
Browse all S&P 500 tickers to see this metric applied to individual companies.
Educational research only — not investment advice.