Definition
The term Amex Volatility Index refers to a composite derived from the bid / ask quotes of NASDAQ 100 options. The Amex Volatility Index measures the implied volatility of a NASDAQ 100.
Explanation
The Amex Volatility Index was created to measure investor sentiment about the future. Specifically, those expectations around what are termed the "new economy" stocks of the NASDAQ 100. The index measures the implied volatility of a hypothetical, constant-maturity, one-month, at-the-money option. The index is expressed in terms of the standard deviation of returns. This means a value of 25 suggests investors can expect that in the coming year, the NASDAQ 100 (QQQ) could be as high as 25% above its current value or 25% below its current value.
First published on January 23, 2001, the Amex Volatility Index is refreshed every trading day between the hours of 9:30 a.m. and 4:15 p.m. Eastern Time. The performance of the index can be tracked using the stock ticker QQV.
Related Terms
- The term S&P Completion Index refers to a composite that includes mid, small, and micro-cap stocks. The S&P Completion Index is published and maintained by S&P Dow Jones Indices.
Moneyzine EditorSeptember 21st, 2023 - The term S&P Total Market Index refers to a composite that includes large, mid, small, and micro-cap stocks. The S&P Total Market Index is published and maintained by S&P Dow Jones Indices.Moneyzine EditorSeptember 21st, 2023
- The term S&P 900 Pure Value refers to an index that includes a subset of the securities found in the S&P 400 and S&P 500 Indices. The S&P 900 Pure Value is published and maintained by S&P Dow Jones Indices.Moneyzine EditorSeptember 21st, 2023
- The term S&P 500 Top 50 refers to an index that includes the mega cap stocks found in the S&P 500 Index. The S&P 500 Top 50 is published and maintained by S&P Dow Jones Indices.Moneyzine EditorSeptember 21st, 2023
