Jay Caauwe from the CBOE pointed out that Open Interest in VIX Futures now rest at 225,463…the first time that CFE has surpassed the 225K level. And in fact, VIX open interest has been ‘north’ of 200,000 contracts since 4/27.
I agree with Jay, as volatility trading has become more mainstream the importance of understanding what VIX Futures are and how they work is vitally important. For those investors familiar with Futures, an allocation in VIX Futures or Options could certainly be part of an overall trading strategy.
Go to www.cfe.cboe.com for more info on VIX Futures and Options.