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Volatility Strategies

Sample Strategies Using Options and Futures on CBOE's Volatilty Indexes

Below are some examples of hypothetical strategies using options or futures on the CBOE Volatility Index® (VIX®). Before investing in VIX options or futures, please read closely the Disclosure* and its links below.

Investors who are bullish on VIX, and bearish on stocks* might consider -

Long VIX Call Options
Long VIX Call Spreads
Short VIX Put Credit Spreads
Long VIX Futures

Investors who are bearish on VIX, and bullish on stocks* might consider—

Long VIX Put Options
Long VIX Put Spreads
Short VIX Call Credit Spreads
Short VIX Futures
VIX Options Strategy—Bearish on VIX—Put Spread with VIX Options

Other Strategies That Use VIX Options

VIX Out-of-the-Money Bear Put Spread
VIX Vertical Call Spread and Adjustments
VIX Options - Reverse Collar Strategy

* Caution—sometimes VIX and stock prices move in the same direction. The information in this website is provided solely for general education and information purposes, and is not meant to be investment advice. For more information, please see the VIX Options FAQ re: the unique pricing of VIX options, visit the CBOE Strategies webpage , and the VIX website at Past performance is not indicative of future results.

Volatility Videos

Videos with Volatility Strategies and Updates

Papers on Use of VIX Futures and Options

UMass paper on "VIX Futures and Options - A Case Study of Portfolio Diversification During the 2008 Financial Crisis" (July 2009):    Two-page summaryFull report   Press Release

Bibliography of Articles on VIX, and Volatility and Variance Swaps

VIX-related Benchmark Indexes

Ticker Index Website

Delayed Quotes

Sym  Last Pt. Change
VPD CBOE VIX Premium Strategy Index
VPD 272.40 0.54
VPN CBOE Capped VIX Premium Strategy Index
VPN 265.61 0.53
VXTH CBOE VIX Tail Hedge Index
VXTH 191.89 0.83

Options Profit-and-Loss Diagrams

* In the Protective Put and Buy-write diagrams, the faint grey line represents an equity position, and the colored "hockey-stick-shaped" line represents the combined stock plus options position. For more details, please click on strategies.

Futures and options on the CBOE’s volatility indexes have several UNIQUE FEATURES that distinguish them from most equity and index options, and investors are strongly ENCOURAGED TO CLOSELY READ AND UNDERSTAND THE VIX OPTIONS FAQ at and other informational materials before investing. CBOE®, Chicago Board Options Exchange®, CBOE Volatility Index®, and VIX® are registered trademarks of Chicago Board Options Exchange, Incorporated (CBOE). BXM, BXD, BXN, BXR, BXY, VXD, VXN, RVX and SPX are service marks of CBOE. CFESM is a service mark of CBOE Futures Exchange, LLC. Dow Jones®, DJIA®, and Dow Jones Industrial AverageSM are trademarks of Dow Jones & Company, Inc. and have been licensed for use for certain purposes by CBOE. CBOE's Options on the Dow based on the Dow Jones indexes and financial products based on the CBOE DJIA BuyWrite Index and the CBOE DJIA Volatility Index are not sponsored, endorsed, marketed or promoted by Dow Jones and Dow Jones makes no representations regarding the advisability of investing in such products. S&P®and S&P 500® are registered trademarks of the McGraw-Hill Companies, Inc. and are licensed for use by CBOE. The Russell 2000® Index is a registered trademark of The Frank Russell Company, used under license. Nasdaq®, Nasdaq-100® and Nasdaq-100 Index are trademarks of The Nasdaq Stock Market, Inc. (with which its affiliates are the "Corporations"). The CBOE Nasdaq-100 BuyWrite Index, and the CBOE Nasdaq-100 Volatility Index ("Indexes") are not derived, maintained, published, calculated or disseminated by the Corporations. Neither the Indexes nor any Derivative Product based on the Indexes has been passed on by the Corporations as to its legality or suitability. Such Derivative Products are not issued, endorsed, sold, sponsored, marketed or promoted by the Corporations. The Corporations make no warranties and bear no liability with respect to the Indexes. The methodologies of the CBOE BuyWrite Indexes and the CBOE Volatility Indexes are owned by CBOE and may be covered by one or more patents or pending patent applications. CBOE's BuyWrite Indexes are designed to represent a proposed hypothetical buy-write strategy. Supporting documentation for claims, comparisons, recommendations, statistics or other technical data is available by calling 1-888-OPTIONS, sending an e-mail to, or by visiting This document contains comparisons, assertions, and conclusions regarding the performance of index based on backtesting, i.e., calculations of how the index might have performed in the past if it had existed. Backtested performance information is purely hypothetical and is provided in this document solely for informational purposes. Backtested performance does not represent actual performance, and should not be interpreted as an indication of actual performance. Past performance does not guarantee future results. The methodology of the CBOE Volatility Index is owned by CBOE and may be covered by one or more patents or pending patent applications.

CBOE Volatility Index (VIX)