The Weekly News Roundup is your weekly recap of CBOE features, options industry news and VIX Index and volatility-related articles from print, broadcast, online and social media outlets.
A Second VESTment Launches
On Monday, October 18, CBOE Vest announced the launch of the CBOE Vest Defined Distribution Strategy Fund (VDDIX). VDDIX, the second mutual fund to be launched by CBOE Vest, seeks to generate consistent periodic distributions while preserving capital over the long term.
For more information, see the Press Release or visit https://www.cboevestfunds.com/.
“Vest Launches Options-Based S&P Mutual Fund” – Daniel O’Leary, EQ Derivatives
“CBOE Vest Launches Second Mutual Fund Focused on Defined Distribution” – Teresa Rivas, Barron’s
Why Own, When You Can Rent?
For investors with more of a long-term outlook on the market, LEAPS, which are long-term options that expire in years, rather than weeks or months, can be an attractive alternative to buying and selling stock.
“How to Invest in LEAPS” – Jeff Brown, U.S. News and World Report
“Long-Term Options Such as LEAPS Can Lower Risk” – Ellen Chang, TheStreet.com
VIX FIX: Volatility’s Vote of Confidence
Markets are ending the week with little fanfare, continuing to operate in a narrow trading range, leaving many investors unsure of future direction. Despite the uncertainty of the Presidential election and a potential December rate hike from the Fed, markets have remained calm and the CBOE Volatility Index (VIX Index) declined to the13 level after a brief spike to16. Some market observers, however, are leery of the quiet market, and feel that it’s only a matter of time before volatility pops.
“Own VIX Skew into U.S. Election: Vol Manager” – Daniel O’Leary, EQ Derivatives
“The VIX: Not So Fearsome After All?” – Teresa Rivas, Barron’s
“Investors Exit Election Calendars, But Scale of Clinton Win Could Inject Volatility” – Daniel O’Leary, EQ Derivatives
“Scenes From “The New Asset Class: Investing in the VIX” – Value Walk
“Brexit’ Holds Promise for Vol-Hungry Traders – Terry Flanagan, Markets Media
“CBOE VIX: Volatility Up 35% Since Labor Day” – Sam Bourgi, Economic Calendar.com