VIX Option

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Dictionary Says

Definition of 'VIX Option'

A type of non-equity option that uses the CBOE Volatility Index as the underlying asset. This is the first exchange-traded option that gives individual investors the ability to trade market volatility. Trading VIX options can be a useful tool for investors wanting to hedge their portfolios against sudden market declines, as well as to speculate on future moves in volatility.
Investopedia Says

Investopedia explains 'VIX Option'

A trader who believes that market volatility will increase now has the ability to profit on this outlook by purchasing VIX call options. Sharp increases in volatility generally coincide with a falling market, so this type of option can be used as a natural hedge rather than using index options. For advanced option traders, it is possible to incorporate many different advanced strategies - such as bull call spreads, butterfly spreads, etc. - by using VIX options.
Search results for

'VIX Option'

  • Introducing The VIX Options

    http://www.investopedia.com/articles/optioninvestor/06/NewVIX.asp
    ... and cannot go to zero. For those who are new to option trading, the VIX
    options are even more exciting. Most people who focus on ...

  • Option Volatility: Contrarian Indicator | Investopedia

    http://www.investopedia.com/university/optionvolatility/volatility8.asp
    Option Volatility: Contrarian Indicator. ... volatility tutorial, we'll present some
    examples of how IV levels, using the CBOE Volatility Index (VIX) index, relate ...

  • The VIX: Using The "Uncertainty Index" For Profit And Hedging

    http://www.investopedia.com/articles/exchangetradedfunds/11/profit-from-vix.asp
    ... ETNs, Index Fund. Volatility is a major factor in equity and option investments,
    and the Chicago Board Options Exchange Market Volatility Index (VIX), has been ...

  • Option Price-Volatility Relationship: Avoiding Negative Surprises

    http://www.investopedia.com/articles/optioninvestor/05/020205.asp
    ... in market direction (that is, picks a market bottom) by purchasing a call option,
    he or ... And Figure 1 shows that the VIX levels plunge as the market moves higher ...

  • Determining Market Direction With VIX

    http://www.investopedia.com/articles/optioninvestor/03/091003.asp
    ... Fear Let's take a closer look at some numbers for the VIX, to see what the option
    markets tell us about the stock market and mood of the investing crowd. ...

  • Using The VIX For Shorting Opportunities

    http://www.investopedia.com/articles/technical/04/022504.asp
    ... measures market volatility. Essentially the VIX forms a hypothetical
    at-the-money option that will expire in 30 days. When originally ...

  • VIX: What It Is

    http://stocks.investopedia.com/stock-analysis/moneyshow/VIXWhatItIsAndIsNot.aspx
    ... Volatility is a major factor in equity and option investments (as evidenced in recent
    days), and the CBOE Volatility Index (VIX) has been a popular and ...

  • Find Profits By Hedging Iron Condors

    http://www.investopedia.com/articles/optioninvestor/09/hedging-iron-condors-put-calendars.asp
    ... (Discover a new financial instrument that provides great opportunity for both,
    hedging and speculation, read Introducing the VIX Option.). ...

  • Option Volatility: Predicting Big Price Moves | Investopedia

    http://www.investopedia.com/university/optionvolatility/volatility7.asp
    ... for the S&P 500 alongside levels of IV (measured in the VIX index) and ... when there
    is an approaching corporate news event, which drives up option prices while ...

  • How To Manage Bull Put Option Spreads

    http://www.investopedia.com/articles/optioninvestor/05/051005.asp
    ... A Premium for Puts A high VIX means big fat premiums available for selling, especially
    on the puts, where there is a ... These are option prices for S&P 500 futures ...

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