Taking a look at the VIX shows it just spiked up near the top end of its range over the past 20 months.
The VIX looks at volatility going out one month. Or another way to put it, how much traders are willing to pay for S&P options a month out. Meanwhile, the CBOE 3-Month Volatility Index (VXV) looks at the volatility over the coming three months. In most cases, the VXV is higher than the VIX because you are willing to pay more to own something for three months as there are more chances for something bad to happen. Makes a lot of sense if you think about it. (more)
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