To: John Pitera who wrote (15801 ) 4/12/2014 12:56:04 AM From: John Pitera Respond to This bad boy looks interesting Short-Term VIX options and futures: the newest volatility innovations from CBOE. gauge of expectations of 9-day volatility, making it particularly responsive to changes in the S&P 500® Index. VXST is a valuable tool for traders looking to target short-term moves or to better manage short-term risk With Short-Term VIX options or futures, now you have the opportunity to: • Capitalize on market events, such as earnings, government reports and Fed announcements • Better manage near-term volatility risk • Hedge short term positions • Capture added time decay with weekly expirations • Create strategies using VXST and VIX to capture changes in volatility term structure • Take advantage of volatility for the here and now
With its 9-day time horizon, the Short-Term VIX Index is particularly reactive to short-term market events and changes in volatility. For example, when Standard & Poor's downgraded U.S. debt in August 2011, the Short-Term VIX Index value rose 81 percent, compared to VIX's rise of 50 percent. Price Charts: cboe.com
