Cboe eyes physically-delivered VIX options for US futures traders

Discussion in 'Options' started by ajacobson, Apr 2, 2024.

  1. ajacobson

    ajacobson

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    Plans to allow traders to receive volatility index (VIX) futures to settle options at Cboe Global Markets will open the way to the creation a tradeable one-day contract, as short-dated options trading continues to


    Partial article
     
  2. SunTrader

    SunTrader

    .... physically-delivered?

    This is a test right? :)
     
    schizo likes this.
  3. schizo

    schizo

    Ditto @SunTrader. What the hell does that supposed to mean? Nooooo, you don't mean 0DTE futures, do ya? :wtf: :fistbump:
     
  4. Yes, a put or a call option that expires into a futures contract if it’s in the money. It says so in the article. You failed the test.
     
    newwurldmn likes this.
  5. SunTrader

    SunTrader

    What article? Where?

    And where do I go to collect my physically-delivered VIX option contract. It is on 8 1/2' x 11' or legal size paper?
     
  6. Reading comprehension is not your strong suit, is it? The snippet from the article that @ajacobson posted says explicitly “Plans to allow traders to receive volatility index (VIX) futures to settle options at Cboe Global Markets”.

    This approach is not any different than physically settled options on ES which settle into a futures contract. It’s not clear, however, if these are gonna be listed as futures options on CFE or have some sort of bizarre EFP delivery scheme on CBOE and require both futures+equity accounts.
     
  7. lol..the plans for Vix futures must be toward "a zero hedge"
    I take this as the most bullish signal I've ever encountered in my long years Trading

    On a Long Enough Timeline, The survival Rate for the S&P goes to Infinity
     
    Last edited: Apr 2, 2024
    SunTrader likes this.
  8. FSU

    FSU

    Will be interesting to see how they structure it. Since they have both weekly and monthly futures, which ones will the dailies deliver? If they deliver futures, this may keep many brokers from offering them such as Fidelity.
     
  9. Well, I just called someone I know at CBOE and she said it’s gonna be midcurve futures options, settling into monthlys. Fully covered by SPAN magin. For once, their actions actually make sense lol.
     
  10. FSU

    FSU

    Intersting, thanks for the update. So unless you have a futures account, you won't be able to trade these. And guessing the will be regulated by the CFTC not SEC?
    Did they give you a projected date when they plan to start trading?
     
    #10     Apr 2, 2024