Would you trade VVIX?

Discussion in 'Stocks' started by failed_trad3r, Mar 23, 2012.

  1. If there are futures for it? There are alot more spikes in their chart compared to the VIX.

    The CBOE® VVIXSM Index

    Every asset class deserves its own volatility index, including volatility itself. The VVIX Index is an indicator of the expected volatility of the 30-day forward price of the VIX®. This volatility drives nearby VIX® option prices. CBOE also calculates a term structure of VVIX for different VIX® expirations. The VVIX or any point on its term structure is calculated from a portfolio of VIX® options (VVIX portfolio) using the same algorithm used to calculate the VIX®. Approximate fair values of VIX® futures prices and their standard deviations are derived from the VVIX term structure. Selling a VVIX portfolio on a consistent basis can capture a volatility risk premium.