Over the past three calendar months (September through November) –
- The CBOE Crude Oil ETF Volatility Index (OVX) rose 119%, the highest percentage rise for OVX over three calendar months since the inception of OVX price history in 2007.
- The CBOE Gold ETF Volatility Index (GVZ) rose 96%.
- The spot prices for crude oil (WTI) fell 31.1%, gold fell 9.3%.
- The market capitalizations for Apple (AAPL) stock rose 14%, and for Exxon Mobil (XOM) stock fell 10%.
THREE VOLATILITY INDEXES
Investors who have a view on the future movement of oil volatility, gold volatility, and stock market volatility can explore tradable futures and options contracts on the OVX, GVZ, and VIX® indexes. The closing values for last Friday were 36.44 for the OVX Index, 25.17 for the GVZ Index, and 13.33 for the CBOE Volatility Index® (VIX®).
CAPITALIZATION FOR THREE STOCKS
As noted above, over the past three months, the spot price for crude oil (WTI) fell 31.1%, the market capitalization for Exxon Mobil (XOM) stock fell 10%, and the CBOE Crude Oil ETF Volatility Index (OVX) rose 119%. Investors who wish to hedge exposure to energy-related securities might initially consider options on XOM and the USO ETF. If investors would like instruments with the potential to explode on the upside in the event of more volatility in the crude oil market, futures and options on the OVX Index are other instruments that could be considered. For more information on options and futures on volatility indexes, please visit www.cboe.com/volatility.