Wall Street is getting a new fear gauge: meet the one-day VIX

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Wall Street is getting a new fear gauge: meet the one-day VIX
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Markets get new fear index as VIX doesn't seem to be up to the job of fully measuring volatility anymore despite warnings signs

Put simply: In the age of 0DTE, Wall Street may need a new fear gauge.CBOE Global Markets Inc., the Chicago-based exchange operator behind the VIX, has announced that a new one-day version of its flagship volatility index is poised to launch. The CBOE 1-Day Volatility Index is scheduled to start on April 24, according to a notice on the company’s website.

“This makes sense because so much of the volume has moved to shorter tenors,” Amy Wu Silverman, head of derivatives strategy at RBC Capital Markets, said. “I’ve been joking that the VIX is going through a mid-life crisis, being replaced by someone younger .”Article content Zero-day options have spiked in popularity since May, when CBOE expanded existing short-term derivatives to include Tuesday and Thursday expirations, blanketing each weekday.

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