Chicago Board Options Exchange, Incorporated® (CBOE ) today announced that it will list options on the CBOE Russell 2000®Volatility Index (ticker: RVX) beginning Tuesday, December 3.
The CBOE Russell 2000 Volatility Index (RVXSM Index) is an up-to-the-minute market estimate of the expected 30-day volatility of the Russell 2000® Index (RUT), calculated using real-time bid/ask quotes of RUT options that are listed on CBOE. The calculation of the RVX Index is based on the CBOE Volatility Index® (VIX®Index) methodology applied to RUT options, the third most actively traded index option at CBOE in the first half of 2013.
RUT is the premier measure of the performance of small-capitalization U.S. stocks and an effective gauge and play on the health of the U.S. economy -- 84 percent of the revenues generated by the companies in the index come from within the U.S.
RVX options will allow investors to hedge the volatility of a portfolio of small-cap stocks and to spread the volatility level of the Russell 2000 against large-cap index volatility to take advantage of differences between small- and large-cap company dynamics.
Futures on the CBOE Russell 2000 Volatility Index (futures ticker: VUSM) began trading at CBOE Futures Exchange (CFE) on November 18, 2013.
Used on their own or in combination with other CBOE volatility index products, CBOE Russell 2000 Volatility Index products will allow customers to hedge, diversify or take a directional view on volatility in the small-cap market sector.
Group One Trading will be the Designated Primary Market Maker (DPM) for the RVX options traded on CBOE.
For more information on the CBOE Russell 2000 Volatility Index and products, including a video, see www.cboe.com/RVX. To learn more about CBOE's volatility indexes, including methodology, daily and historical data and charts, contract specifications, and other information, please visit www.cboe.com/volatility.
