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Understanding Dispersion and the Cboe S&P 500 Dispersion Index

The Cboe S&P 500 Dispersion Index measures the range of individual stock returns around the index's average return, providing potential opportunities for stock selection. Understanding dispersion is crucial for active investors and traders, as it offers insights for using options or hedging strategies based on market volatility, guiding trading and portfolio decisions.

Understanding dispersion and the Cboe S&P 500 Dispersion Index is crucial for active investors and traders, as it measures the variation in individual stock returns within the S&P 500 and helps spot potential stock-picking opportunities. It also provides insights for using options or hedging strategies based on market volatility, guiding trading and portfolio decisions. Overall, it offers a clearer picture of market behavior beyond just the average return.