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

 

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
 

ETF Volatility Index Options and Futures

Gain effective alternatives to protect against and capitalize on volatility. We've applied the CBOE Volatility Index methodology to a range of ETFs that track commodities, interest rates and emerging markets - giving investors more ways to help diversify portfolios, manage risk and turn volatility to their advantage.

Trade on the volatility of select exchange-traded funds.

Only CBOE, the leader and innovator of volatility trading, lets you leverage the volatility of sector ETFs with options and futures on:

CBOE Gold ETF Volatility IndexSM (GVZ)SM measures the market's expectation of 30-day volatility of gold prices by applying the VIX methodology to options on SPDR Gold Shares (Ticker: GLD)
CBOE Crude Oil ETF Volatility IndexSM (OVX)SM measures the market's expectation of 30-day volatility of crude oil prices by applying the VIX methodology to United States Oil Fund, LP (Ticker: USO) options spanning a wide range of strike prices
CBOE Emerging Markets ETF Volatility IndexSM (VXEEM)SM measures the market's expectation of 30-day volatility of the Emerging Markets ETF by applying the VIX methodology to the iShares MSCI Emerging Markets Index (Ticker: EEM) options
CBOE Brazil ETF Volatility IndexSM(VXEWZ)SM is derived from applying CBOE's VIX methodology to the prices of CBOE listed options on the iShares MSCI Brazil Index Fund (Ticker: EWZ). EWZ options were the seventeenth most actively traded ETF options in the U.S. last year
CBOE EuroCurrency Volatility IndexSM (EVZ)SM measures the market's expectation of 30-day volatility of the $U.S./Euro exchange rate by applying the VIX methodology to options on the CurrencyShares Euro Trust (Ticker: FXE)

CBOE Volatility Index - VIX
> Download Now
 

Content provided by third party Twitter® users - CBOE does not screen, control, monitor or endorse such content which solely represents the views of such users.

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, by calling 1-888-OPTIONS, 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 © 2014 CBOE. All Rights Reserved.