Weekly Options on Cboe Volatility Index® Futures

Pre-launch Resource Hub

The Pre-launch Resource Hub is designed to provide market participants with information regarding planned Cboe products, including information that may be useful in preparing to trade Cboe products on their day one launch.

If there is other information that you would like to see provided here, please contact us.

What are Weekly Options on Cboe Volatility Index Futures?

Weekly Options on Cboe Volatility Index Futures (VX Options) is a product that Cboe Futures Exchange, LLC (CFE) plans to offer for trading. VX Options are options on VX futures. VX futures are cash-settled futures on the Cboe Volatility Index (VIX® Index) listed for trading on CFE.

The VIX Index is a financial benchmark designed to be an up-to-the-minute estimate of expected volatility of the S&P 500 Index that is calculated by using real-time prices of S&P 500 Index (SPX®) options listed on Cboe Exchange, Inc. (Cboe Options). Further information regarding the calculation of the VIX Index may be found in the Volatility Index Methodology: Cboe Volatility Index and in the Volatility Index Mathematics Methodology.

VX Options have European-style exercise, are physically settled, and have P.M. settlement. The VX futures contract that underlies a VX Options contract is the front month VX futures contract relative to the expiration date of the VX Options contract.

The underlying front month VX futures contract for this purpose is the nearest monthly VX futures contract that expires on or after the business day following the expiration date of the VX Options contract. A monthly VX futures contract is a VX futures contract that generally expires on the third Friday of a month and for which the final settlement value is calculated utilizing standard SPX options that are A.M. settled.

The symbology for a VX Options contract denotes the expiration date of the VX Options contract and which VX futures contract underlies that VX Options contract.

The exercise of a VX Options contract results in the delivery of one underlying VX futures contract.

CFE may list weekly expirations of VX Options calls and puts on the front month VX futures contract relative to the expiration date of the applicable VX Options contract. The weekly expirations may expire on any weekday. The weekday of the expiration of a VX Options contract is specified in the symbology for the contract.

Cboe Futures Exchange (CFE®) Rules

The CFE Rulebook includes rules that govern trading on CFE. The Policies and Procedures section contains policies and procedures that supplement the rules in the CFE Rulebook. These documents will be updated to include rules relating to VX futures upon the launch of the product.

Contact Us

Global Sales CFE Market Data CFE Trade Desk
Natalie Reed
Director of Global Derivatives Sales
[email protected]
Market Data Services
[email protected]
CFE Trade Desk
[email protected]

This information is a high-level overview of what is currently contemplated. The information included is subject to change and to more detailed provisions that would be put in place in connection with the planned launch of Weekly Options on Cboe Volatility Index Futures (VX Options). Additionally, the planned launch of VX Options remains subject to regulatory review.

There are important risks associated with transacting in any of the Cboe Company products or any digital assets discussed here. Before engaging in any transactions in those products or digital assets, it is important for market participants to carefully review the disclosures and disclaimers contained at: https://www.cboe.com/us_disclaimers.

These products and digital assets are complex and are suitable only for sophisticated market participants. In certain jurisdictions, including the United Kingdom, Cboe Digital products are only permitted for investment professionals, certified sophisticated investors, or high net worth corporations and associations.

These products involve the risk of loss, which can be substantial and, depending on the type of product, can exceed the amount of money deposited in establishing the position.

Market participants should put at risk only funds that they can afford to lose without affecting their lifestyle.

Hypothetical scenarios are provided for illustrative purposes only. The actual performance of financial products can differ significantly from the performance of a hypothetical scenario due to execution timing, market disruptions, lack of liquidity, brokerage expenses, transaction costs, tax consequences, and other considerations that may not be applicable to the hypothetical scenario.

S&P, S&P 500, US500, 500, THE 500, SPDR, SPX, and DSPX are trade names or trademarks of S&P Dow Jones Indices, LLC, or its affiliates ("S&P"). Any products that have an S&P index as their underlying interest are not sponsored, endorsed, sold, or promoted by S&P and S&P makes no representation regarding the advisability of investing in any investment product that is based on any such indices.

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