fbpx July VIX settlement took place this morning | Option Strategist

July VIX settlement took place this morning

By Lawrence G. McMillan

July $VIX settlement took place this morning.  The official settlement price was 19.10, just slightly below last night's $VIX close of 19.21.  All outstanding June futures and options contracts will settle at that price.  For example, if you own a July 20 put and didn't sell it prior to today, it would settle for 0.90 ($90 per contract), since it is 90 cents in the money (20 minus 19.10).

The settlement price is only a snapshot of $VIX trading, so it is not reliable for discerning trends.  That said, this is roughly the average of the last three months, meaning that $VIX hasn't really gone much of anywhere in that time. 

The accompanying graph shows all the $VIX settlements since the inception of $VIX futures trading in May, 2004.  One thing that stands out on the graph is that this current bull market has been accompanied by a higher $VIX than was the one in 2004-2006.

VRO VIX

AttachmentSize
Image icon vro.gif13.66 KB
Share this

Option Strategist
Blog Search

Recent Blog Posts

Trading or investing whether on margin or otherwise carries a high level of risk, and may not be suitable for all persons. Leverage can work against you as well as for you. Before deciding to trade or invest you should carefully consider your investment objectives, level of experience, and ability to tolerate risk. The possibility exists that you could sustain a loss of some or all of your initial investment or even more than your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with trading and investing, and seek advice from an independent financial advisor if you have any doubts. Past performance is not necessarily indicative of future results.
Visit the Disclosure & Policies page for full website disclosures.

-->