VIX Option

41 rows · View the basic ^VIX option chain and compare options of CBOE Volatility .

Values below 15 ordinarily correspond to less stressful, or even complacent, times in the markets.

VIX Options and Futures

The CBOE market volatility Index, also known as the VIX, can be a very rewarding trading vehicle. You can use option trades on the VIX to take advantage of the different moves and volatility in the broader markets.

Buying straddles is a great way to play earnings. Many a times, stock price gap up or down following the quarterly earnings report but often, the direction of the movement can be unpredictable. For instance, a sell off can occur even though the earnings report is good if investors had expected great results If you are very bullish on a particular stock for the long term and is looking to purchase the stock but feels that it is slightly overvalued at the moment, then you may want to consider writing put options on the stock as a means to acquire it at a discount Also known as digital options, binary options belong to a special class of exotic options in which the option trader speculate purely on the direction of the underlying within a relatively short period of time Cash dividends issued by stocks have big impact on their option prices.

This is because the underlying stock price is expected to drop by the dividend amount on the ex-dividend date As an alternative to writing covered calls, one can enter a bull call spread for a similar profit potential but with significantly less capital requirement. In place of holding the underlying stock in the covered call strategy, the alternative Some stocks pay generous dividends every quarter. You qualify for the dividend if you are holding on the shares before the ex-dividend date On expiration days for VIX derivatives, expected opening information EOI messages are disseminated during the pre-open state regarding the constituent option series.

EOI messages contain information based on resting orders and quotes in the book, and those messages may include the expected opening price EOP , the expected opening size EOS , any reason why a series may not open if the current conditions persisted when the series was to open e.

EOI messages are published to Cboe Option's website here on expiration days for VIX derivatives and are disseminated approximately every six 6 seconds or less during the pre-open state. On expiration days for VIX derivatives, Cboe Options does not begin disseminating the VIX spot cash value until the constituent option series that Cboe Options will use to calculate the settlement value for VIX derivatives have opened.

Click here for more information. For additional information, click here. Introducing 24 hour trading, 5 days a week with TD Ameritrade. VIX values higher than 30 are usually associated with a significant amount of volatility as a result of investor fear or uncertainty. Values below 15 ordinarily correspond to less stressful, or even complacent, times in the markets. Because of its tendency to move significantly higher during periods of market fear and uncertainty, another name for the VIX is the "fear index.

The estimated volatility of a security's price derived from an Discover a new financial instrument that provides great opportunities for both hedging and speculation. VIX ETFs can be somewhat difficult to understand, but they also offer the potential for great returns. Discover how the VIX Index, or "fear gauge," began above the historical mean, and learn how this relates to past spikes in volatility. The VIX is often called the fear gauge of the markets — understand what it means for your investments.