On August 5 the CBOE Volatility Index® (VIX®) closed at 11.39 (its lowest daily close in more than two years) and the VIX futures established a new all-time record high open interest of 537,201. On August 9 the VIX Index closed at 11.66, and the VIX futures open interest hit a new all-time record of 543,192.
RELATIONSHIP BETWEEN VIX INDEX AND OPEN INTEREST
While many market watchers believe that trading activity often picks up at times when volatility and the VIX Index rise, it is interesting to note in the chart above that the VIX futures open interest often has risen when the VIX Index has been at relatively low levels.
PRICING FOR VIX FUTURES – IN CONTANGO
Newer investors who are considering VIX futures are encouraged to learn more about VIX futures pricing. The table below shows a snapshot of the pricing for the VIX Index and for 14 expirations of VIX futures. The VIX futures have both standard expirations (e.g., with a price of 12.67 on Wednesday, August 17), and new Weeklys expirations (e.g., with a price of 13.85 for Week 34 on Wednesday, August 24).
To learn more about ways in which VIX futures and options can be used to help manage your portfolio, please visit www.cboe.com/VIX.