VXN (Nasdaq-100 Volatility Index)
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Definition
The Nasdaq-100 equivalent of the VIX: 30-day expected implied volatility derived from options on the NDX, reflecting fear and hedging demand in large-cap technology and growth names.
How to read it
VXN is constructed like the VIX but on Nasdaq-100 options, so it captures the volatility expectations of a tech- and growth-heavy universe. Because the NDX is more concentrated and higher-beta than the S&P 500, VXN typically prints above the VIX. The spread between them is the useful signal: a widening VXN-minus-VIX gap indicates fear concentrating in tech/growth, while a narrowing gap suggests broadening or rotation. Levels are read on the same calm/stress/panic scale as VIX, adjusted upward for the structurally higher baseline.
How practitioners use it
Used as context among multiple indicators — never as a standalone signal to act.
Less common professional uses
VXN/VIX ratio compression toward 1.0 can signal leadership rotation out of mega-cap tech into value/cyclicals — a breadth story hidden inside the vol data. In concentrated-index regimes, VXN can be dominated by a handful of mega-caps, so a 'tech fear' reading may really be single-name earnings risk — cross-check with dispersion. Divergence: NDX at new highs while VXN refuses to fall signals hedging into strength in the very names driving the tape — a caution flag for trend-followers.
Sources & provenance
CBOE/Nasdaq VXN methodology (educational overview); Portal desk education notes
This page is educational content published by Pachira Aquatica Global LLC. It is not investment advice and not a recommendation.