First Day of Trading for Variance Futures

CBOE Variance Futures began trading today at the CBOE Futures Exchange (CFE). Variance Futures are similar to VIX as they are based on market volatility. However, Variance Futures are a realized volatility measure while VIX is a forward looking implied volatility measure. The base ticker for Variance Futures is VA. There are eight contracts being actively quoted and unlike VIX futures Variance Futures are not serially listed. The expiration months for the current available contracts are –

January 2013

February 2013

March 2013

June 2013

September 2013

December 2013

June 2014

December 2014

On the first day of trading CFE saw trades occur in the January 2013, June 2013, March 2013 and December 2013 contracts. This is a great start for what should be an excellent new way for traders to take positions based on equity market volatility. 

For more information on CBOE Variance Futures check out –