Volume in VIX futures has been increasing steadily, with average daily volume in June of 579 contracts, and open interest of 7,156 as of Thursday, June 10.
CFE opened for trading on March 26, 2004, offering futures on the well-known benchmark of market volatility, the CBOE VIX. Derived from real-time S&P 500 Index option prices, VIX is designed to reflect investors' consensus view of expected stock market volatility over the next 30 days. CFE now also offers Variance futures (symbol VT).
Some market analysts consider VIX the "investor fear gauge" because investors buy portfolio protection in the form of index options during periods of financial stress, which are often accompanied by market declines. A low VIX reading can be the result of a lack of demand for such insurance, thus indicating investor confidence or complacency.
More information on CFE and VIX futures, including historical values and charts, can be found at http://www.cboe.com/VIX or http://www.cboe.com/CFE.
- CBOE Volatility Index (VIX) Futures ticker symbol: VX.
- Trading hours: 8:30 a.m. to 3:15 p.m. CT (Chicago Time).
- Contract size: $100 times VXB. For example, with a VIX value of 16.50, the VXB would be 165 and the contract size would be $16,500.
- Minimum tick size: 10 cents. Therefore, minimum value change is in $10 intervals.
- Current contract months, in addition to June (VXM), are: July (VXN), August (VXQ), November (VXX). February VIX futures (VXG) will be added on Monday, June 21.
- Last trading date: usually the Tuesday prior to the third Friday of the month.
- Settlement date: usually the Wednesday prior to the third Friday of the month.
- VIX Futures are settled in cash.
CBOE, regulated by the Securities and Exchange Commission (SEC), is the creator of listed options, and the world's largest options http://www.cboe.com/.
