This week has been a big week regrading new interest in tools for portfolio protection.

  • We spoke with a Wall Street Journal reporter to provide information on the VIX and VVIX indexes that was used in a story entitled “Election Fear Creeps Into the Market.”
  • In addition, I spoke with multiple investment advisers who said that this was the busiest week of the year in terms of new client inquiries on protective strategies.
  • Both the VIX and CBOE VIX of VIX (VVIX) indexes have risen each of the past 8 trading days (see charts at the bottom of this blog).
  • Contracts that are used to protect portfolios from big drawdowns include the S&P 500 put options, VIX call options, and VIX futures; as is shown in the charts below, all of these contracts had big volume days on Friday Oct. 28 (when the news of the re-opened FBI investigation was announced) and on Nov. 3.

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Over the past 8 trading days, both the VIX and VVIX rose every day, and the total gains were 70% for the VIX Index and 40% for the VVIX Index.

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MORE INFORMATION 

To learn more about managing your portfolio with index options, please visit the Education tab at the CBOE website.

Qualified institutional investors also are welcome to register at www.cboermc.com for an upcoming Risk Management Conference hosted by CBOE –

  • RMC Asia 2016: Nov 30 - Dec 1, 2016 at the Conrad Hong Kong Admiralty, Hong Kong
  • RMC US 2017: Wednesday – Friday, March 8 – 10, 2017 at the St. Regis Monarch Beach, Dana Point, California.