EVER WONDER HOW... To protect against or take advantage of broad market volatility? Start trading VIX® options and futures.

When CBOE introduced the CBOE Volatility Index® (VIX) in 1993 it quickly became the world's barometer for market volatility. Since volatility often signifies financial turmoil, VIX is often referred to as the "investor fear gauge."

More than that, VIX is a risk powertool – giving investors the ability to leverage volatility via options and futures traded exclusively on CBOE and CBOE Futures Exchange (CFE®). Here's how:

The VIX is a benchmark indicator that measures market expectation of near-term volatility conveyed by stock index option prices
The VIX is based on real-time prices of options on the S&P 500® Index and is designed to reflect investors' consensus view of future (30-day) expected stock market volatility
VIX options and futures enable investors to trade volatility independent of the direction or the level of stock prices
And, now you can trade VIX futures with weekly expirations to more precisely trade volatility around market events. VIX WeeklysSM options will be coming soon


Features and Benefits:

Whatever your opinion - bullish, bearish or somewhere in-betweenish - VIX options and futures give you the opportunity to protect against or capitalize on broad market volatility.

Risk management to help protect a portfolio against downward moves in the broad market
High negative correlation to the broad market, as measured by the S&P 500 Index
The ability to leverage volatility to take advantage of upward or downward moves in the stock market
Hedging opportunities – ability to hedge the volatility of a stock portfolio, separate from directional price moves
Cash settlement and European–style exercise

Featured Resources

VIX Weeklys Quick Reference Guide
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Extended Trading Hours Fact Sheet
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CBOE Volatility Index - VIX
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Options involve risk and are not suitable for all investors. Prior to buying or selling an option, a person must receive a copy of Characteristics and Risks of Standardized Options. Copies are available from your broker or at www.theocc.com. Futures trading is not suitable for all investors, and involves risk of loss. Futures and options on 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 ODD and the VIX options FAQ at http://www.cboe.com/micro/vix/vixintro.aspx and other informational material before investing. No statement within this ad should be construed as a recommendation to buy or sell a security or futures contract or to provide investment advice.

CBOE®, Chicago Board Options Exchange®, CBOE Volatility Index®, VIX® and Execute Success® are registered trademarks and SPXSM are service marks of Chicago Board Options Exchange, Incorporated (CBOE). S&P® and S&P 500® are registered trademarks of Standard & Poor's Financial Services, LLC and are licensed for use by CBOE and CBOE Futures Exchange, LLC. S&P does not sponsor, endorse, sell, or promote any S&P index-based investment product. Copyright © 2016 CBOE. All Rights Reserved.