Quick question on VIX options

Discussion in 'Options' started by 76132, Nov 10, 2011.

  1. 76132


    I was wondering if anybody knew how settlement works? From the specifications on the CBOE, it seems like it's cash settled.

    Is that true?

    So for example, if I sell a VIX put and the holder exercises the option, I don't end up buying a basket of assets that I have to sell later? I just pay the other party the cash difference?

  2. ASE1245


  3. 76132


    Thanks! That makes life so much easier than actually having to buy the underlying.