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Short-Term VIX options and futures: the newest volatility innovations from CBOE.

Like the popular CBOE Volatility Index® (VIX® Index), the new CBOE Short-Term Volatility Index (VXST Index or "Short-Term VIX") is a market based reflection of investors' consensus view of expected stock market volatility. While the VIX measures expectations of 30-day future volatility, the Short-Term VIX provides a gauge of expectations of 9-day volatility, making it particularly responsive to changes in the S&P 500® Index.

With its 9-day snapshot, VXST is a valuable tool for traders looking to target short-term moves or to better manage short-term risk. The VXST Index is calculated by using real-time S&P 500 Index (SPXSM) option bid/ask quotes, using nearby and second nearby options with at least 1 day left to expiration and then weighting them to yield a constant, 9-day measure of the expected volatility of the S&P 500 Index.

With Short-Term VIX options or futures, now you have the opportunity to:

Capitalize on market events, such as earnings, government reports and Fed announcements
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Better manage near-term volatility risk
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Hedge short term positions
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Capture added time decay with weekly expirations
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Create strategies using VXST and VIX to capture changes in volatility term structure
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Take advantage of volatility for the here and now

With its 9-day time horizon, the Short-Term VIX Index is particularly reactive to short-term market events and changes in volatility. For example, when Standard & Poor's downgraded U.S. debt in August 2011, the Short-Term VIX Index value rose 81 percent, compared to VIX's rise of 50 percent.

Price Charts:

VXST
Source: CBOE



Additional VXST Videos

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spacer > Read the Press Release on VXST Options
April 10, 2014
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Featured Resources
factsheet VXST Options Quick Reference Guide
> Download Now
factsheet VXST Futures Quick Reference Guide
> Download Now
Additional Resources:

> VXST Microsite
> VXST White Paper
> CBOE Options Hub

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