Record monthly average daily volume (ADV) was achieved during July, the second busiest trading month ever at the exchange. For futures on the CBOE Volatility Index (VIX), July trading activity remained brisk as monthly ADV reached a new all-time high and total volume topped one million contracts for the third time this year. Monthly average daily volume at CFE set a record for the third consecutive month in July as 58,532 contracts per day were traded. When compared to the June 2011 ADV of 55,600, which had been the previous high, and the 12,857 contracts traded per day during July 2010, monthly ADV in July increased by five percent and 355 percent, respectively. Additionally, CFE experienced the most-active trading day in its history on July 14, 2011 when a total of 104,811 contracts traded at the exchange. The previous record was 101,200 contracts traded on June 16, 2011. And finally, CFE has started to see an increase in volume in VOW ( Weekly Options on VIX Futures). Weeklys listed on CBOE have come into their and the CFE version of weeklys are starting to show some legs. Check them out
Volatility trading or more specifically, VIX futures trading continue to prove their merit as evidenced by the just released July numbers for CFE. Trading across many exchange listed products tend to exhibit a slowdown in activity during the summer months, but where better to stay involved and positioned than through the use of VIX futures. Reflecting market moves, whether they are due to the US debt deal or Euro centric concerns, the VIX futures continue to provide a play in an adverse market environments. So lets go over the numbers….