The Chicago Board Options Exchange (CBOE), part of CBOE Holdings, Inc (NASDAQ:CBOE), today unveiled its plans to list options with weekly expirations on the CBOE Volatility Index (VIX Index), starting October 8, 2015.
The listing of VIX Weeklys options introduces one more tool to an array of long- and short-term trading strategies that can be executed on the VIX Index, a benchmark of equity market volatility. The launch of VIX Weeklys options comes after the launch of VIX Weeklys futures, which were introduced at the CBOE Futures Exchange (CFE) on July 23, 2015.
“We received strong interest from our customers in short-term VIX trading, and the initial response to VIX Weeklys futures has been positive. We look forward to building on that favorable response with the upcoming launch of VIX Weeklys options,” said CBOE Holdings CEO Edward T. Tilly.
“VIX Weeklys are a natural extension and complement to standard VIX options and futures and provide investors with additional opportunities to trade the world’s most widely followed measure of market volatility.”
The VIX Index is based on real-time prices of options on the S&P 500® Index (SPX) and is designed to reflect investors’ consensus expectations for 30-day stock market volatility. Standard VIX futures and options expire monthly. Weekly VIX options expirations will offer convergence to the VIX cash index four to five times per month, instead of once a month.
CBOE will be able to leverage the growing popularity of Weeklys, which reflects the fact that such options enable investors to fine-tune their positions.
CBOE may list up to six consecutive weekly expirations for VIX options and futures.
New weekly expirations for VIX futures and options are listed on Thursdays (excluding holidays) and expire on Wednesdays. Alike VIX Weeklys futures, the VIX Weeklys options will be available during regular and extended trading hours.
To read the official press release by CBOE, click here.