A low-cost way to protect against an S&P 500 drawdown as risks escalate

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A low-cost way to protect against an S&P 500 drawdown as risks escalate
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Here's how options traders assess rising market risks and hedge their portfolio.

The Cboe Volatility Index , commonly referred to simply as "the VIX", is an index derived from 30-day S & P 500 index options prices. Put simply, the VIX represents the options market's expectations for S & P 500 volatility over the next 30 days. Sometimes referred to as a "fear index", Friday's VIX Index closing level of 19.32 is only slightly below the 6-month high of 20.09 seen on May 4th.

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