VIX Options

 

Introduction to VIX Options

In 2006, options on the Cboe Volatility Index® (VIX®) began trading on the Cboe Options Exchange. The VIX options contract is the first product on market volatility to be listed on an SEC-regulated securities exchange. Many investors consider the VIX Index to be the world's premier barometer of investor sentiment and market volatility, and VIX options are very powerful risk management tools.

VIX options now begin trading at 2:00 a.m. Central time (Chicago time). Please visit the Global Trading Hours webpage for more details.

Unique Features of VIX Options

VIX options have several features that distinguish them from most equity and index options, including:

  • Pricing Based on Forward VIX Value
  • Pricing Can Be Different for a Number of Reasons
  • Wednesday Settlement
  • Special Opening Quotation Price
  • Negative Correlation to Stock Indexes
  • High Volatility of Volatility
 

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