The Index Realized Volatility, reflects the historical volatility across multiple timeframes which laid out on one chart. The values shown will be reflective of the Index or ETF you chose to view in the upper left hand corner of the page.

Within the chart, the x-axis is the trade date and the y-axis is the level of realized volatility. As these ratios come down over time, it implies that future volatility should come down as well. This would indicate that equities are safer and people should be more comfortable investing. Alternatively, rising implied volatility is considered predictive of more expensive options and higher levels of uncertainty.

So, if you see the 5-day, then 1-month and so on start coming down, investors often start buying equities. This chart can be helpful to see where realized volatility has been, and investors will often pair this view with their independent trading approaches, for example by selling equities if the 5-day breaks out meaningfully against the 1-month or longer durations.

SpotGamma Subscribers can access this chart for the SPX, SPY, NDX, QQQ, RUT and IWM.