The CBOE Volatility Index, more commonly referred to as (VIX), is an up-to-the-minute market estimate of expected volatility that is calculated by using real-time S&P 500® Index (SPX) option bid/ask quotes.

The VIX closed at 24.39; its 10-day moving average is 27.23.

The VIX July options expire on July 22, July VIX options cease trading today, Tuesday July 21.

Option Update is provided by Stock Specialist Paul Foster of theflyonthewall.com.

Market fear has been running rampant recently and with the Dow Jones Industrial Average dropping hundreds of points daily, it is easy to understand why. The CBOE Volatility Index know as the VIX has hit all time high levels that have exceed all previous readings since they started the index back in 1990.

Today the VIX hit 70.90; a month ago it closed at 24.52 ---an average level for the year. That is a 189% rise in the last month! In 2007 it averaged 17.3.

Before the current crisis the highest reading for the VIX was 45.74 recorded on 10/8/98. That means we have surpassed the previous high by 55%.

The VIX is based on call option premium scared investors are willing to pay for protection on their stocks.

Kevin Kersten is an Stock and Options Analyst with InvestorsObserver.com. Disclosure note: Mr. Kersten owns and/or controls a diversified portfolio of long and short positions that may include holdings in companies he writes about.