DEMYSTIFYING THE VIX

The 'tourist takes a stab at putting some VIX theory into English

Have you ever heard some option egghead talk about how VIX is actually a “variance swap?”

My plan for this post was to unmask the math behind the VIX. Maybe putting together the numbers and showing the calculations might make it less intimidating. I figured; how hard can it be?

Well, I figured wrong.