Curated News
By: NewsRamp Editorial Staff
October 29, 2024

Cboe Launches Options on VIX Futures and Expands Retail Access at HOOD Summit

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Source News Release

TLDR

  • Cboe's new options on VIX futures offer more choices for expressing directional views and managing market volatility exposure, potentially giving traders a competitive advantage.
  • Options on Cboe Volatility Index Futures are contracts representing the right to buy or sell an underlying futures contract at a specified price on or before a specified date.
  • The launch of Options on Cboe Volatility Index Futures expands trading capabilities, potentially meeting rising investor demand for options trading and enhancing risk management efficiency across the entire market.
  • Cboe's new VX Options provide increased optionality, a new and different payout profile, and the ability to take short-term views on forward volatility, offering valuable insights into market dynamics.

Impact - Why it Matters

This news matters as it highlights the expansion of trading capabilities and meets the rising investor demand for options trading, providing increased optionality for investors and enhancing risk management efficiency across the entire market.

Summary

Cboe Global Markets, Inc. (CBOE: CBOE) recently launched options on Cboe Volatility Index Futures (VX Options) and announced at the HOOD Summit in Miami, FL on Oct. 17 that Robinhood customers would be able to trade index options. This expands their trading capabilities and meets 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. 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 futures are contracts that represent the right, not the obligation, to either buy (go long) or sell (go short) a particular underlying futures contract at a specified price on or before a specified date, the expiration date. Regarding Cboe’s recently launched product, VX Options are options on VX futures. VX futures are cash-settled futures on the Cboe Volatility Index (VIX® Index) listed for trading on the Cboe Futures Exchange, LLC (CFE).

Source Statement

This curated news summary relied on this press release disributed by News Direct. Read the source press release here, Cboe Launches Options on VIX Futures and Expands Retail Access at HOOD Summit

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