VIX Options

VIX - CBOE Volatility Index  

Introduction to VIX Options

In 2006, options on the CBOE Volatility Index® (VIX®) began trading on the Chicago Board Options Exchange. The VIX options contract is the first product on market volatility to be listed on an SEC-regulated securities exchange. Many investors consider the VIX Index to be the world's premier barometer of investor sentiment and market volatility, and VIX options are very powerful risk management tools.

VIX options now begin trading at 2:00 a.m. Central time (Chicago time). Please visit the Extended Trading Hours webpage for more details.

Unique Features of VIX Options

VIX options have several features that distinguish them from most equity and index options, including:

  • Pricing Based on Forward VIX Value
  • Pricing Can Be Different for a Number of Reasons
  • Wednesday Settlement
  • Special Opening Quotation Price
  • Negative Correlation to Stock Indexes
  • High Volatility of Volatility

VIX Weeklys

CBOE Holdings plans to list weekly expirations for VIX futures and options. VIX Weeklys futures are expected to begin trading at CBOE Futures Exchange (CFE) in July, pending regulatory review. VIX Weeklys options are expected to begin trading at Chicago Board Options Exchange shortly thereafter, also pending regulatory approval.

For more details, see

What is VIX?

Since its introduction in 1993, VIX has been considered by many to be the world's premier barometer of investor sentiment and market volatility. The VIX Index is an implied volatility index that measures the market's expectation of 30-day S&P 500® volatility implicit in the prices of near-term S&P 500 options. VIX is quoted in percentage points, just like the standard deviation of a rate of return. The VIX closing price in 2005 was 12.07. Please see the VIX White Paper for more details.

Unique Pricing and Settlement

The pricing and settlement for VIX options will have some differences from the pricing and settlement for equity and stock index options; please see the contract specifications, VIX White Paper, and the information below for more details.