European Vol Indexes (VSTOXX and VCAC) Both Up More Than 27% Since Mid-March

Since the banking crisis in Cyprus began in mid-March, investors have asked – How nervous are the markets in Europe and worldwide? and – How can I manage my worldwide portfolio exposure?

Investors now have more tools to track and manage worldwide volatility and portfolio exposure.  CBOE offers 20 indexes designed to provide real-time measures of implied volatility (, and a number of exchanges across the globe now are authorized offer licensed volatility indexes that utilize the popular VIX methodology.

There is evidence to suggest that since mid-March implied volatility rose more in Europe than in other major financial markets. In the period from March 15 through today (March 26) the VSTOXX – EuroSTOXX 50 Volatility Index (VSTOXX) rose 32.7%, the CAC-40 Volatility Index (VCAC) rose 27.8%, the CBOE EuroCurrency Volatility Index (EVZ) rose 17.0%, while the CBOE Volatility Index (VIX) rose only 13.0%.  See the chart and table below for more related info.

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 CBOE now offers dozens of options for investors who wish to manage their global equity exposure. Below is a list of the CBOE options volume in February for select CBOE options.

Puts                       Calls                      Ticker          Security

9,764,582             5,424,712                     SPX        S&P 500 Index

3,622,874             6,883,829                     VIX         CBOE Volatility Index

241,636                233,122                      EEM        iShares MSCI Emerging Markets Index

77,806                  48,196                       EFA        iShares MSCI EAFE Index Fund

65,181                  31,933                       EWZ       iShares MSCI Brazil Index Fund

7,438                   4,026                        EWI        iShares MSCI Italy Index Fund

6,554                   5,780                        EWP       iShares MSCI Spain Index Fund

4,459                   807                          EWG       iShares MSCI Germany Index Fund

1,342                   149                          EWQ       iShares MSCI France Index Fund

324                      242                         VGK       Vanguard MSCI European ETF

260                      110                         EWL       iShares MSCI Switzerland Index Fund


A microwebsite with more information and more options is at



Strategies that could be considered to manage worldwide portfolios include —