The Weekly News Roundup is your weekly recap of CBOE features, options industry news and VIX and volatility-related articles from print, broadcast and online and social media outlets.
Up, Up, and Away!
During the month of September, geopolitical events across the globe spurred an increase in market volatility. Investors turned to options, boosting industry-wide volume by 15 percent from the previous year.
OCC Announces Cleared Contract Volume in September Increased 15% – OCC Press Release
VIX Index Enhancement
Beginning this Monday, CBOE will include SPX Weeklys options in the calculation of the CBOE Volatility Index. CBOE’s Matt Moran has details on what this means for the VIX Index.
“VIX Spot Index to Include S&P 500 Weekly Options” – Matt Moran, CBOE Options Hub
How I Saved on my Insurance
Options are often referred to as an insurance policy for stocks, providing protection against market swings and peace of mind from being able to hedge a position. It no longer takes 15 minutes to save on your insurance.
“Is Rampant Hedging a Bullish Sign?” – Steven M. Sears, Barron’s
Volatility, as Usual
It has been a wild week for the market, causing the VIX Index to spike to nearly 18, before declining yet again today. Historically speaking, the VIX Index still remains low, however. Is this week’s volatility short-lived or is there more turbulence ahead?
“Volatility Update: Divergence Between Index, Fear Gauge” – JJ Kinahan, Forbes
“VIX Resisting Panic as S&P 500 Rout Erases $320 Billion” – Callie Bost and Joseph Ciolli, Bloomberg
“Volatility Captive to Fed” – Markets Media
“Why isn’t VIX Higher?” – Jamie Tyrell, optionMONSTER
“Markets Under Pressure from Rising Volatility” – Michael Palmer, BNN TV (Canada)
This week, OCC and the exchanges jointly announced the adoption of new risk control standards that aim to protect market participants and strengthen options industry protections.
“OCC and the U.S. Options Exchanges Announce New Risk Control Standards to Strengthen Industry Protections” – OCC Press Release
“Market Meltdown Curbs Approved by American Options Exchanges” – Sam Mamudi, Bloomberg
“Trade-Tracking Computer System Will Likely Cost Less Than Expected” – Scott Patterson, The Wall Street Journal