The Chicago Board Options Exchange says that volume for the first day of trading of options on the CBOE Volatility Index totalled 9,423 contracts (4,328 calls and 5,095 puts).
VIX is the widely disseminated benchmark index commonly referred to as the market’s “fear gauge,” and for the first time, investors now have the opportunity to trade options on this measure of market volatility and investor sentiment. The VIX price is calculated and disseminated by the CBOE throughout the trading day. VIX futures have been available on the all-electronic CBOE Futures Exchange since 2004.
“We are thrilled with Friday’s launch of options on VIX. Volume of almost 10,000 contracts on the first day trading is an endorsement of the strong investor interest in this product,” says William Brodsky, CBOE chairman and CEO. “The VIX has been an industry benchmark for over a decade and, by creating an opportunity for investors to trade the indicator of market volatility, CBOE has achieved yet another industry milestone.”
CBOE begins trading options on volatility index
Investors show strong interest in VIX futures
- By: James Langton
- February 27, 2006 February 27, 2006
- 16:15