Are circumstances making you a little uncomfortable about 30-day volatility bets? Thinking that the next two-and-a-half weeks may bring some mayhem that requires serious fine-tuning of your portfolio? Well, the CBOE has a timely new product for you, set to debut in less than an hour!
The owner of the biggest U.S. options market today introduced the CBOE S&P 500 Short-Term Volatility Index that tracks nine-day options on the Standard & Poor’s 500 Index. The company’s most famous gauge, the CBOE Volatility Index, or VIX, measures 30-day options on the S&P 500….
Starting this month, VIX futures will be available for trading from 3 a.m. to 4:15 p.m. New York time every weekday, with an additional session from 4:30 p.m. to 5:15 p.m. on Monday through Thursday, CBOE said yesterday. A software update to prepare for the shift caused a malfunction that shut CBOE’s main market for 3 1/2 hours in April, prompting the company to delay the trading-time changes.
The price of the short-term index announced today will be revealed once daily at 4:15 p.m. New York time, with updates every 15 seconds beginning later this year, CBOE said.
The company created the nine-day VIX, based on weekly S&P 500 options that expire every Friday, amid surging demand for volatility products as U.S. stocks climb to record highs. Once options and futures linked to the index are made available, traders will gain another way to speculate on — or hedge their assets in advance of — short-term events.
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