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Screenshot of a breaking news alert e-mail from Q2 2017
Multi-asset trading and investment services provider Saxo Bank has recently expanded its product offering via the addition of weekly options on VIX (VIX Weeklys).
The main purpose of the new instrument is to provide traders with the opportunity to trade on the short term instead of only monthly or longer dated options.
VIX Weeklys can be traded in all of Saxo Bank’s platforms, including in the dedicated Contract Options Chain in SaxoTrader.
New weekly expirations are listed on Thursdays (excluding holidays) and expire on Wednesdays but have a Last Trading day on the business day before. CBOE may list up to six consecutive weekly expirations for VIX options.
The VIX uses prices on the S&P 500 Index (SPX) options, and it is constructed to reflect investors’ view of the 30-day implied volatility (IV).
Some of the strategies used with these instruments are covered call and naked puts. Spreads are also frequently used with the instrument, especially credit spreads, calendar and diagonal spreads.
You can view the announcement from Saxo Bank by clicking here.