
T. Rowe Price
Analysis of Volatility Index Trends and Dynamics
Pages
7
Time to read
18 mins
Publication
Language
English

Pages
7
Time to read
18 mins
Publication
Language
English
This research article examines the recent behavior of the Volatility Index (VIX) amidst changing dynamics in the options market. It discusses how trends like the rise of zero days to expiration (0DTE) options and call-overwriting ETFs are influencing VIX levels, leading to a shift from traditional fear indicators to a more subdued market sentiment. The paper aims to clarify whether the VIX is fundamentally 'broken' or simply evolving in response to market conditions.