VIX term structure
The VIX against the three-month VIX: whether near-term fear is higher than longer-term fear.
Formula
Term = VIX − VIX 3M
How to read it
Normally the three-month reading is higher (contango, calm). When the 30-day VIX rises above it (backwardation), the market is paying up for protection now.
How to use it
Backwardation is the market paying up for immediate protection — usually short-lived and often near lows.
Also called: vix 3m, term, term structure.