Insights topic
Volatility and VIX Insights
How IV rank, vega, skew and the VIX family are built, and the places where each is easy to misread, with the arithmetic shown.
13 articles · Updated
Implied volatility is the uncertainty priced into an option premium, and the VIX summarises it for the S&P 500 over the next 30 days. Both are easy to quote and easy to misread. A higher IV can sit beside a lower dollar premium. A low IV rank can coincide with a high IV percentile. A chain can show 0% when the data provider cannot solve for a value.
The options-side articles cover how IV rank and IV percentile use a rolling window, what a vega of 0.12 says about a three-point IV move, and how skew changes premium. One shows that a two-cent bid-ask spread can span a wide IV range when vega is small.
The market-side articles follow the VIX spot-to-futures basis, VIX1D against VIX9D, VVIX as the volatility of volatility, the special opening quotation that settles VIX options, and the CFTC’s weekly VIX positioning report. In one, a 21.45% rise in the VIX is a 47.49% rise in its squared reading. They describe how a measure is built, with sources from Cboe, CFTC and OCC, and do not predict direction.
All 13 articles, newest first
Worked examples use fictional figures.
- A Two-Cent Option Spread Can Cover a Wide IV RangeSolve implied volatility at both ends of two fictional option quotes and see why low vega can make a precise-looking midpoint IV fragile.Options education7 min read
- Friday's VIX Rose 21.45%; Its Squared Reading Rose 47.49%VIX rose from 16.46 to 19.99 on 16 October. The 21.45% volatility change becomes 47.49% on a squared scale, with different units and strict limits.Market context5 min read
- Why IV Rank Can Be Low While IV Percentile Is HighA fictional IV history shows how rank and percentile can disagree, why a score can jump when an old spike drops out, and which definitions to check.Options education6 min read
- A Higher-IV Put Can Have a Lower Dollar PremiumCompare volatility skew across put strikes without confusing higher IV with a higher dollar premium, a bargain or a forecast of a fall.Options education5 min read
- What Vega 0.12 Says About a Three-Point IV MoveConvert a three-percentage-point implied-volatility change into a conditional per-contract vega estimate without treating it as a fill or profit forecast.Options education3 min read
- CFTC's Friday VIX COT Report Is a Tuesday SnapshotCFTC updated its combined CBOE report on 28 August 2026, while the VIX futures positions in that report were marked as of 25 August. A COT record needs both dates before it can sit beside options-market data.Market context6 min read
- Why an Options Chain Can Show 0% Implied VolatilityA 0% implied-volatility field can reflect a data or model-input problem rather than a zero-risk contract. Learn what to check before treating it as a market signal.Options education7 min read
- VIX Closed at 14.90. Expiring Contracts Use a Separate Option StripCboe's 7 August 2026 VIX close was 14.90, while expiring VIX derivatives settle through a special opening quote using a distinct option strip and price rule.Market context7 min read
- VIX Closed at 15.99 and August Futures at 18.1046: What the 2.11-Point Basis MeasuresSpot VIX fell faster than August VIX futures on 31 July 2026. The resulting 2.1146-point basis compares different horizons, pricing methods and settlement values.Market context8 min read
- Earnings Expected Move: How Straddle Premium Becomes a Breakeven RangeLearn how an at-the-money straddle creates an earnings expected-move estimate, why its expiration breakevens matter, and where the shortcut can fail.Options education11 min read
- VIX Closed at 18.21 and VVIX at 98.51: How to Read Volatility of VolatilityCboe's 28 July 2026 VIX and VVIX closes show why expected equity volatility and expected VIX-forward volatility answer different risk questions.Market context7 min read
- VIX1D Closed at 13.09 and VIX9D at 18.13: Why the Horizon Matters More Than the GapCboe's 27 July 2026 volatility curve rose from 13.09 at one day to 20.20 at three months. Variance arithmetic separates horizon differences from unsupported event forecasts.Market context7 min read
- Fed, GDP and PCE in 18.5 Hours: Why the Expiry Map MattersVIX closed at 18.58 before a tightly packed Federal Reserve, GDP and PCE window. See why expiry dates, total variance and event timing matter.Market context8 min read
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