In any recession, VIX, or the volatility index, rises. And then, inevitably, it drops. This presents a great opportunity to make some money by betting on the fact that VIX will drop. Shorting VIX is one of the best ways of making money in the downturn.

What is VIX?

The technical definition of VXX is as follows: created by the Chicago Board Options Exchange (CBOE), the Volatility Index, or VIX, is a real-time market index that represents the market’s expectation of 30-day forward-looking volatility. Derived from the price inputs of the S&P 500 index options, it provides a measure of market risk and investors’ sentiments. It is also known by other names like “Fear Gauge” or “Fear Index.” Investors, research analysts and portfolio managers look to VIX values as a way to measure market risk, fear and stress before they take investment decisions.

What is VIX (simplified)

VIX measures volatility, or the change in the stock market. The more the market rises up and down, the higher VIX is. In times in crisi,