Just looking to confirm the basics here, not in depth stuff like alpha, theta decay, etc. Let me know if I misinterpret anything below. CBOE VIX futures options are European style, cash settled instruments meaning they can only be exercised on the expiration date for the cash equivalent settlement. The options themselves can be bought or sold anytime like any other option before expiration. They use a $100 multiplier. If today I bought one Jan. 17, 2018 15.00 Call for .15, that will cost me $15.00. If on Jan. 17, 2018 the final settlement price is determined to be 17.00, then the exercised cash settlement value I will receive is $200. Open interest on the Jan. 17, 2018 40.00 Calls is 109,557. People sold those calls as an income generating strategy betting the settlement price will be below 40.00 on the expiration date. If I sell 100 Jan. 17, 2018 40.00 Calls for .05, I receive $500. If the settlement price on Jan. 17 is below 40.00, those calls expire worthless. If the settlement price on Jan 17 is 41.00, my calls will be exercised and I will pay out the cash settlement difference of $10,000. Thanks in advance.