VXN

VXN, short for the Cboe Nasdaq-100 Volatility Index, is a financial index published by Cboe Global Markets. It measures the market's expectation of 30-day volatility implied by options on the Nasdaq-100 stock index (NDX). VXN is designed to serve as a counterpart to the VIX, which tracks S&P 500 options. Both indices are derived from the prices of calls and puts across a range of strike prices, using a formula that aggregates implied volatilities into a single figure expressed as a percentage.

The calculation uses options across near-term and next-term expirations to produce a 30-day expected volatility figure. The methodology is similar to that used for VIX, adapted to Nasdaq-100 options. As such, VXN reflects the market's consensus view of volatility, not the direction of price moves.

Interpretation: Higher VXN values indicate greater expected Nasdaq-100 volatility and are often associated with elevated market risk or fear. Lower values suggest calmer conditions. Investors use VXN as a sentiment gauge, a hedge indicator, or as a signal for timing of trades in Nasdaq-100-linked instruments. It is common for VXN to spike during tech-led selloffs or broad market stress and to retreat when markets stabilize.

Trading and related products: The VXN is published by Cboe, and various derivatives and exchange-traded products reference its level, including futures, options on volatility, and volatility-targeting funds. Like VIX, VXN is not a forecast of market direction, but a measure of expected volatility over a 30-day horizon.