CHICAGO, April 4, 2011 /PRNewswire/ -- CBOE announced today that it will begin offering trading in options on the CBOE Gold ETF Volatility Index (GVZ), often referred to as the "Gold VIX" – on Tuesday, April 12.
The new options contract follows the introduction of trading in Gold VIX security futures (GV), also based on GVZ, at CBOE Futures Exchange (CFE) on March 25. Extending the reach of CBOE's VIX methodology to new asset classes, investors can use either or both products to segment and hedge short-term implied volatility risk in a highly traded commodity class for the first time.
The calculation of the CBOE Gold ETF Volatility Index is based on the well-known CBOE Volatility Index® (VIX®) methodology applied to options on the SPDR Gold Trust (GLD). The Gold VIX is an up-to-the-minute market estimate of the expected 30-day volatility of GLD, calculated using real-time bid/ask quotes of GLD options that are listed on CBOE.
Calculated and distributed by CBOE since 2008, the Gold VIX is one in a series of VIX benchmarks created by CBOE. CBOE also calculates the CBOE Crude Oil ETF Volatility Index (OVX), based on United States Oil Fund (USO) option prices, and the CBOE EuroCurrency ETF Volatility Index (EVZ), based on CurrencyShares Euro Trust (FXE) options.
For more information on CBOE Gold ETF Volatility Index options and futures, see http://www.cboe.com/GVZ.
The introduction of new tradable volatility products is one several innovations impacting the expansion of CBOE's proprietary volatility offerings since the beginning of the year. Most recently:
- In March, CBOE filed for Securities and Exchange Commission approval to list five options contracts based on volatility indexes that track individual stocks – Apple (VXAPL), Amazon (VXAZN), Goldman Sachs (VXGS), Google (VXGOG) and IBM (VXIBM) – that will give investors the ability to trade options contracts based on the volatility component of the individual stock for the first time. These "Stock VIXes" were first introduced by CBOE in January as volatility benchmarks (www.cboe.com/EquityVIX). The rule filing also proposes to permit the trading of options on the CBOE Crude Oil ETF Volatility Index (OVX), based on United States Oil Fund (USO) options and would allow CBOE to list options on up to 40 different volatility benchmarks on individual equities and certain exchange traded funds (ETFs) that could be created by CBOE.
- Also in March, CBOE began applying its proprietary VIX methodology to six sector-specific exchange-traded funds for investors wanting to monitor volatility for ETFs held in their portfolios: iShares MSCI Emerging Markets Index Fund (VXEEM); iShares Trust FTSE China 25 Index Fund (VXFXI); iShares MSCI Brazil Index Fund (VXEWZ); Market Vectors Gold Miners Fund (VXGDX); iShares Silver Trust (VXSLV); and Energy Select Sector SPDR (VXXLE).
- In February, CBOE began publishing values for the CBOE S&P 500 Skew Index (SKEW), a benchmark measure of the perceived risk of extreme negative market moves -- often referred to as "tail risk" or a "black swan" event -- in U.S. equity markets. (www.cboe.com/skew )
- In January, CBOE launched a web page displaying CBOE Volatility Index term structure data, calculated every 15 seconds throughout the trading day. (www.cboe.com/data/volatilityindexes)
CBOE, the largest U.S. options exchange and creator of listed options, continues to set the bar for options trading through product innovation, trading technology and investor education. CBOE offers equity, index and ETF options, including proprietary products, such as S&P 500 options (SPX), the most active U.S. index option, and options on the CBOE Volatility Index (VIX). Other products engineered by CBOE include equity options, security index options, LEAPS options, FLEX options, and benchmark products such as the CBOE S&P 500 BuyWrite Index (BXM). CBOE's Hybrid Trading System incorporates electronic and open-outcry trading and is powered by CBOEdirect, a proprietary, state-of-the-art electronic platform that also supports the C2 Options Exchange (C2), CBOE Futures Exchange (CFE), CBOE Stock Exchange (CBSX) and OneChicago. CBOE is home to the world-renowned Options Institute and www.cboe.com, named "Best of the Web" for options information and education.
CBOE is regulated by the Securities and Exchange Commission (SEC), with all trades cleared by the AAA-rated Options Clearing Corporation (OCC).
CBOE®, Chicago Board Options Exchange®, CBSX®, CBOE Stock Exchange®, CFE®, CBOEdirect®, FLEX®, Hybrid®, LEAPS®, CBOE Volatility Index® and VIX® are registered trademarks, and BXM(SM), C2(SM), C2 Options Exchange(SM), EVZ(SM), GVZ(SM), OVX(SM), SKEW(SM), SPX(SM), CBOE Futures Exchange(SM) and The Options Institute(SM) are service marks of Chicago Board Options Exchange, Incorporated (CBOE). Standard & Poor's®, S&P® and S&P 500® are registered trademarks of Standard & Poor's Financial Services, LLC and have been licensed for use by CBOE. All other trademarks and service marks are the property of their respective owners.
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