The Fear Index _hot_ Jun 2026

Before 1993, volatility was an academic concept. Traders knew markets got "jittery," but there was no standardized way to price that jitteriness. The Chicago Board Options Exchange (CBOE) changed that by introducing the VIX.

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It is calculated based on S&P 500 index option prices. When investors are nervous, they buy "insurance" in the form of put options, driving up the VIX. Reading the Scale: The Fear Index

Contrary to popular belief, the Fear Index does not track current panic. It tracks implied panic. It derives its value from the prices of S&P 500 index options—specifically, out-of-the-money puts and calls. Before 1993, volatility was an academic concept