Short-Term $VIX Futures Begin Trading ($VXST)

By Lawrence G. McMillan

At face value, it certainly seems as if this new volatility product, the CBOE Short-Term Volatility Index (symbol: $VXST) will be useful and successful. In this article, we are going to look at all of the details (at least as far as they have been disclosed by the CBOE), as well as make some projections about how these new products might trade. These projections will be based partly on theoretical historic data, as well as what we know about how $VIX futures and options trade. 

The $VXST futures began trading on Thursday, February 13, 2014, while $VXST options do not yet have a start date, but it seems that the option start is not far off – perhaps within a month or two...

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