EVER WONDER HOW... To take advantage of near-term volatility? Stop wondering. Start trading CBOE Short-Term Volatility Index(SM) (VXST(SM)) options and futures.

The newest way to potentially take advantage of volatility.

Like the popular CBOE Volatility Index® (VIX®), the CBOE Short-Term Volatility Index (VXST or "Short-Term VIX") is a market-based reflection of anticipated stock market volatility. But, by tracking 9-day expected volatility rather than 30 days, VXST is particularly responsive to changes in the S&P 500® Index.

With its 9-day snapshot, VXST is a valuable tool for traders looking to target short-term moves or to better manage short-term risk. The VXST Index is calculated by using real-time S&P 500 Index (SPXSM) option bid/ask quotes, using nearby and second nearby options with at least 1 day left to expiration and then weighting them to yield a constant, 9-day measure of the expected volatility of the S&P 500 Index.

With Short-Term VIX options or futures, now you have the opportunity to:

Capitalize on market events, such as earnings, government reports and Fed announcements
Better manage near-term volatility risk
Capture more risk premium with weekly expirations
Hedge short term positions
Create strategies using VXST and VIX to capture changes in volatility term structure
Take advantage of volatility for the here and now

 

VXST and VIX During the October 2013 U.S. Government Shutdown - ChartSource: CBOE

With its 9-day time horizon, the Short-Term VIX Index is particularly reactive to short-term market events and changes in volatility. For example, when Standard & Poor's downgraded U.S. debt in August 2011, the Short-Term VIX Index value rose 81 percent, compared to VIX's rise of 50 percent.



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Featured Resources

VXST Options Quick Reference Guide
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VXST Futures Quick Reference Guide
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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, 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/faq.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®, VIX® and Execute Success® are registered trademarks and CBOE Short-Term Volatility IndexSM, VXSTSM 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. ©2014 CBOE. All Rights Reserved.