You know we can purchase options on Volatility Index? The benchmark becomes a percentage if you buy a call option then you are speculating that the volatility will supersede the benchmark and if you have purchased the a put option then you are speculating that the volatility will under perform the benchmark. The option is not about where the stock price is going but whether it is moving or stable! How the volatility index has been can be checked from this graph which measures market expectations of near term volatility conveyed by stock index option prices.
| Title: | CBOE Volatility Index: VIX |
| Source: | Chicago Board Options Exchange |
| Frequency: | Quarterly |
| Aggregation Method: | Average |
| Units: | Percent |
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