
Volatility Index (VIX) is a real-time index that represents the market's expectations for the relative strength of near-term price changes of the S&P 500 index (SPX).
If you trade options the value of the VIX will determine how much you will pay for an option if you are a buyer and how much you receive in premium (income) if you are a seller of an option.
The greater the value the higher the premium. The above chart demonstrates the value over time.
Dan
