CBOE Futures Exchange LLC said early on Thursday that it will launch its first weekly options on its volatility futures contract, which would expand the exchange’s portfolio of derivative contracts tied to market volatility.
The weekly options on volatility futures — with the ticker symbol “VOW” — will now be available on CBOE’s electronic technology platform, the company said.
Weekly options on VIX futures will have four consecutive contracts with weekly expirations, and the exchange will add a new contract when the near-term contract expires.
“We see the contract being used in a number of ways — as a shorter term play on implied volatility that is independent of the direction and level of stock prices, to hedge equity returns and to diversify portfolios,” the exchange’s Managing Director Andrew Lowenthal said
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CBOE Holdings
CBOE Holdings Inc. claims it is the largest option exchange in the United States. The company, in addition to its core options trading business, provides marketplaces for trading futures contracts...
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