Definition
The CBOE Volatility Index measures expected 30-day S&P 500 volatility from options prices. Often called the "fear gauge."
VIX below 15: calm. 15-20: normal. 20-30: elevated fear. 30+: crisis. VIX sits in the Risk/Price tier (20% group weight) in the DLI scoring model. Group D uses a 5-year rolling tightness percentile rather than raw z-scores, so VIX outliers (mechanically tied to S&P option prices) are bounded before contributing. Historical average: ~19. Key extremes: 82 (March 2020), 65 (August 2024).