Investor fear gauge
From MarketsWiki
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The Chicago Board Options Exchange's (CBOE) Volatility Index (the VIX) is considered by some market analysts to be a benchmark of market sentiment. It is thought that the VIX can reflect investors’ consensus view of expected stock market volatility over the coming 30 days. Thus, it is considered by some to be an "investor fear gauge" because during periods of financial stress -- often accompanied by market declines -- some investors buy portfolio protection in the form of index options. A low VIX reading can be the result of a lack of demand for such insurance, thus indicating investor confidence or complacency.
In addition to VIX options, the CBOE Futures Exchange offers trading in VIX futures.
