unaffiliated third-party website to access its products and its With the VIX at 28.91, the call strikes with 68 days to expiration are trading higher than those with 96 days to expiration.

For most financial futures products. When the Cboe Volatility Index (VIX) was launched 20 years ago, it was aimed mainly at institutional traders and options wonks. When the prices of the further-expiration futures are higher than those of the nearer expiration, the term structure is in contango. Learn how the VIX, VIX futures, and VIX options work together to help traders increase market awareness, make more informed options trading decisions, and employ trading strategies. Retail traders can’t trade the VIX itself, so they often speculate using VIX options. thinkorswim is one of the few retail trading platforms to offer VIX futures, which helps to make VIX options pricing more transparent. When the prices of SPX options go down, the VIX goes down. VIX Options Specification. In late 2020, amid the coronavirus-related recession and ahead of the November election, the VIX futures term structure was in backwardation, indicating there might be less vol in coming months. TD Ameritrade, Inc., member FINRA/SIPC, and a subsidiary of TD Ameritrade Holding Corporation. The third-party site is governed by its posted Ticker Symbol: VIX; Contract Size: $100 times VIX; Contract Months: Up to three near-term months plus up to three additional months on the February quarterly cycle. Trading privileges subject to review and approval. But VIX options in a particular expiration are priced off the VIX futures with the same expiration. Download Reset. So if you’re looking at December VIX options, those are priced off December VIX futures. VIX is the ticker symbol and the popular name for the Chicago Board Options Exchange's CBOE Volatility Index, a popular measure of the stock market's expectation of volatility based on S&P 500 index options.It is calculated and disseminated on a real-time basis by the CBOE, and is often referred to as the fear index or fear gauge.. Clicking this link takes you outside the TD Ameritrade website to Add to watchlist Trade Now. TD Ameritrade Holding Corporation is a wholly owned subsidiary of the Charles Schwab Corporation. Symbol Name Implied Vol Historical Vol Price Change; VIX: CBOE VOLATILITY INDEX (S&P 500 : 1.108: 1.442: 28.68-0.51 This is not an offer or solicitation in any jurisdiction where we are not authorized to do business or where such offer or solicitation would be contrary to the local laws and regulations of that jurisdiction, including, but not limited to persons residing in Australia, Canada, Hong Kong, Japan, Saudi Arabia, Singapore, UK, and the countries of the European Union. In a word, SPX options drive the VIX. When uncertainty rises, so does VIX, typically. Learn more about futures trading on the thinkorswim platform from TD Ameritrade. VIX options are European-style and cash-settled, with Wednesday expiration dates 30 days prior to the third Friday of the calendar month following the expiration of VIX options. As any fishing fan will tell you, patience—and knowing when and where to cast the net—can help you land that big one. Has COVID-19 Made Hemp, CBD, and Cannabis Stocks Go Up in Smoke? TD Ameritrade offers a broad array of futures trading tools and resources. October Outlook: After a Shaky September, Volatility Looms Ahead of Election, Earnings. Some investors watch the VIX relative to the S&P 500. (Remember the term structure in figure 2.). Depending on market conditions, VIX options, VIX futures, and Mini VIX futures can be used not only to help inform your trading decisions, but also to speculate and hedge directional and volatility risk.

As market makers buy and sell options, they hedge trades to avoid directional (delta) risk.
Please read the Risk Disclosure for Futures and Options prior to trading futures products.

TD Ameritrade is a trademark jointly owned by TD Ameritrade IP Company, Inc. and The Toronto-Dominion Bank. message for this link again during this session. When taken at face value, the VIX—that single snapshot of implied volatility—is a pretty straightforward concept.

Not all clients will qualify. When the prices of the further-expiration futures are lower than those of the nearer expiration, it’s called backwardation. Futures and futures options trading is speculative, and is not suitable for all investors. Market volatility, volume, and system availability may delay account access and trade executions. Why? Bingo—VIX futures. VIX (S&P 500 Volatility) Index 36.35 3.00 9.00%. That’s why VIX options look at the prices of VIX futures to determine pre-expiration value, not the VIX itself. Look at VIX futures, too. Member SIPC. With the VIX, VIX options, VIX futures, and now Mini VIX futures (see sidebar below), you can increase your market awareness and make more informed trading decisions. The VIX formula takes a weighted average of the first two expiration dates of SPX options to arrive at a hypothetical constant 30-days-to-expiration volatility.
The VIX is the market’s collective estimate of how much the price of the S&P 500 might move up or down over the next 30 days. VIX futures don’t have a cost to carry. And because of contango or backwardation in VIX futures, the VIX options may look mispriced if all you’re looking at is the spot VIX. (To see the VIX settlement value, use the symbol “VRO.”) It’s confusing, so the expiration dates are clearly labeled for you in the option chain of each series. These are advanced option strategies and often involve greater risk, and more complex risk, than basic options trades. VIX futures are the other half. Historical Prices.

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