Increasing Numbers of Investors Are Leveraging Volatility with VIX® Options and Futures from CBOE

CHICAGO, Ill., April 10, 2012 /PRNewswire/ -- Increasing numbers of investors are turning to VIX^® volatility index options and futures to manage risk and capitalize on market volatility. VIX^® options and futures are traded exclusively on the Chicago Board Options Exchange (CBOE) and CBOE Futures Exchange (CFE).

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In 2011, a total of 98 million VIX^® options contracts traded at CBOE, an increase of 57% versus 2010, while total volume for VIX^® futures at CFE was 12 million contracts traded, up 174% from the prior year.

Since its creation in 1993, the CBOE Volatility Index^® (the VIX^® index) has been the most widely-followed barometer of market volatility.  By using real-time options prices on the S&P 500® Index to get a true snapshot into how the marketplace views expected volatility, the VIX® index is an incredibly valuable tool for traders. 

Over the past five years, the VIX® index has moved opposite the S&P 500® more than 80% of the time.  This strong negative correlation suggests a diversification benefit to including volatility in an investment portfolio.   

In this five-part video series, "VIX® Fact & Fiction," CBOE VIX^® traders address five common misconceptions about VIX^®.

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Or visit www.CBOE.com/VIX for more information.

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SOURCE CBOE