Launched October 14, 2024, Options on Cboe Volatility Index® (VIX® Index) Futures offer more choices for participants using directional views and managing equity market volatility exposure. These new, innovative contracts provide optionality into front month VIX futures and trade on the Cboe Futures Exchange, LLC.
The key benefits include:
Participate in a different payout profile.
Execute event-specific trading strategies and manage exposure with greater granularity.
Provides more precise delta management because the in-the-money options are settled into the front month VIX futures contract.
More market participants are able to trade in the market volatility space.
The VIX Index is a financial benchmark designed to be an up-to-the minute estimate of expected volatility of the S&P 500 Index. The index is calculated by using real-time prices of S&P 500 Index options listed on Cboe Exchange, Inc.
VX Options have European-style exercise, are physically settled, and have P.M. settlement. The VX futures contract that underlies a VX Options contract is the front month VX future
- Each Monday through Thursday will be the first trading date of new VX Options contracts that expire one week forward
- Each Friday will be the first trading date of new VX Options contracts that expire three weeks forward.
Contract specifications from the exchange are found here.
Contract specifications from the exchange are found here.
The Cboe provides case studies here.
To learn about tracking a trading Weekly Vix options on Vix futures using CQG.