Volatility Strategies

Sample Strategies Using Options and Futures on Cboe's Volatility 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 -

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

Other Strategies That Use VIX Options

* 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 http://www.cboe.com/strategies/default.aspx , and the VIX website at www.cboe.com/vix. Past performance is not indicative of future results.

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.

Cboe's volatility indexes are key measures of market expectations of near-term volatility conveyed by option prices. The indexes measure the market's expectation of volatility implicit in the prices of near-term or mid-term options. The indexes are quoted in percentage points, just like the standard deviation of a rate of return, e.g. 19.36. Cboe disseminates the index values continuously during trading hours. The indexes are leading barometers of investor sentiment and market volatility relating to listed options.