Navigating Market Volatility: Cboe Launches Options On VIX Futures

Navigating Market Volatility: Cboe Launches Options On VIX Futures

Benzinga
October 28, 2024

Cboe Global Markets, Inc. (CBOE: CBOE) is taking the world of options trading by storm. Not only did they recently launch options on Cboe Volatility Index Futures (VX Options), a new solution that offers more choices for expressing directional views and managing equity market volatility exposure, they also just announced at the HOOD Summit in Miami, FL on Oct. 17, that Robinhood customers would be able to trade index options, including Cboe’s flagship S&P 500 Index (SPX®) options, Cboe Volatility Index (VIX®) options, Russell 2000 Index (RUT®) options, and Mini SPX (XSP®) options, on the brokerage firm’s platform. This expands their trading capabilities while also potentially meeting the rising investor demand for options trading.

Demand for options trading has risen among retail and institutional investors seeking tools to manage risk and capture market opportunities. As reported by the Options Clearing Corporation, in 2023, total U.S. options volumes exceeded 11 billion contracts, marking the fourth consecutive year of record volumes and a 126% increase since 2019. The average daily volume this year through the third quarter of 2024 was 47 million contracts, an 8% increase compared to the same period last year.

Against this backdrop, the launch of Options on Cboe Volatility Index Futures expands Cboe's ecosystem of tradable volatility products, potentially enabling investors to better understand the volatility in which the market is pricing.

Options On Cboe Volatility Index Futures Explained

Options on futures are contracts that represent the ...

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