As shown in the charts below, key index products continue to have strong volume trends in 2014; here are the percentage changes for average daily volume in the period of Jan. through April 2014 over the figures for the entire year of 2013 –
- S&P 500® Weekly Options (SPXW) – Up 37.6%
- S&P 500 Options – Up 3.1%
- Options on the CBOE Volatility Index® (VIX®) – Up 28.7%
- Futures on the CBOE Volatility Index (VIX) – Up 28.7%
Interest in use of index options and VIX futures continues to grow, as investors look for tools to enhance yields and manage portfolio volatility. I have received several recent investor inquires about the possibility of use of S&P 500 Weekly options, and a paper by Russell Investments at a CBOE web page – Capturing the Volatility Premium through Call Overwriting – discusses the potential for added yields with the selling of S&P 500 Weekly options.
All the above products will be discussed by industry experts at the 3rd Annual CBOE RISK MANAGEMENT CONFERENCE EUROPE to be held Sept. 3 – 5, 2014, at Powerscourt Resort, County Wicklow, Ireland.