Options carry a high level of risk and are not suitable for all investors. Certain requirements must be met to trade options through Schwab. Please read the Options Disclosure Document titled Characteristics and Risks of Standardized Options before considering any options transaction. Call Schwab at 1-800-435-4000 for a current copy. Supporting documentation for any claims or statistical information is available upon request.
One factor that impacts how market makers price options is volatility. This video explores the Cboe Volatility Index®, known as the VIX®, which is used by market makers and individual traders alike to measure volatility and make trading decisions. This video is part of our Trading Options course.
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What Is the VIX®?
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