Options on CBOE volatility indexes can be an invaluable tool for investors seeking to hedge against market risk or speculate on future volatility.
Important differences between volatility options and other index options:
- Quoting – Volatility-related index options quotes are based on the expected value at expiration, and are not the same as the "spot" price, which represents the current index value.
- Expiration and settlement – Volatility-related index options normally expire on a Wednesday, with settlement completed the following day. The last trade day is typically the Tuesday before expiration.
| Volatility-Related Index | Underlying Index | Index Symbol | Settlement Symbol |
|---|---|---|---|
| CBOE Volatility Index® | S&P 500 (SPX) | VIX | VRO |
| CBOE NASDAQ-100 Volatility IndexSM | NASDAQ-100 (NDX) | VXN | VSX |
| CBOE Russell 2000 Volatility IndexSM | Russell 2000 (RUT) | RVX | RSL |
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