DWDS. VXO Chart from 1987-1988 and Explanation of VIX vs. VXO. In the past, I have gone to some length to differentiate between the VIX and the VXO, but given all the confusion I have seen in the media over new VIX records, I think it is time to offer up some history that may help clarify the situation.
A good place to start, frankly, is with a prior post that I titled Ten Things Everyone Should Know About the VIX. For the visual learners out there, I have reduced the history of the VIX and the VXO to a graphical timeline below. Here are some of the important facts in a nutshell: The VIX was launched in 1993 In September 2003 the formula used to calculate the VIX was modified substantially Data from the new 2003 VIX formula has been assigned the VIX ticker, but the CBOE published a reconstruction of historical data for the new VIX formulation going back to 1990 At the same time, the data (both historical and subsequent) associated with the ‘original VIX’ formula was assigned a new VXO ticker [source: VIX and More]
Micro Site. In response to suggestions from customers regarding growth in certain markets in recent years, on September 22, 2003, the CBOE began disseminating prices for two volatility indexes with prices based on trading of S&P options: On September 22, 2003, the CBOE made two key enhancements to the VIX methodology: Based on S&P 500 Options Prices.
The new VIX will be based on prices of S&P 500 (SPX) options.