This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

CBOE Introduces The CBOE Mid-Term Volatility Index

CHICAGO, Nov. 27, 2013 /PRNewswire/ -- Chicago Board Options Exchange, Incorporated ® (CBOE ®) today announced that it has created a new benchmark volatility index – the CBOE Mid-Term Volatility Index SM (ticker: VXMT SM).  CBOE began disseminating values for the new Mid-Term Volatility Index today.

(Logo: http://photos.prnewswire.com/prnh/20121022/MM97794LOGO-b)

The CBOE Mid-Term Volatility Index is a measure of the expected volatility of the S&P 500 ® Index over a six-month time horizon.  The VXMT index is calculated using the well-known CBOE Volatility Index ® (VIX Index ®) methodology, applied to S&P 500 Index (SPX) options that expire six to nine months in the future.

As investors become more sophisticated in their understanding of volatility and their use of volatility products, the VXMT index offers a "macro" view of market risk, a view driven more by the perceived risk of broad economic factors and less by event risk. As a result, the VXMT index tends to move like the VIX index (0.91 correlation), but with lower volatility (55 percent versus 116 percent since January 2008).

The VXMT index joins CBOE's other S&P 500 Index volatility benchmarks – the CBOE Short-term Volatility Index SM (VXST SM index), which measures nine days; the VIX index, which measures 30 days; and the CBOE 3-Month Volatility Index SM (VXV SM Index) -- to create a live, streaming representation of expected volatility at key points along the S&P 500 Index  option term structure.

CBOE is disseminating VXMT Index values generally every 15 seconds during the trading day.  VXMT Index values are available on CBOE's website at www.cboe.com/VXMT and through quote data vendors.

More information on the VXMT Index can be found at www.cboe.com/VXMT.  

CBOE is the home of volatility trading.  An innovator in the volatility space and leading creator of measures that track market volatility, CBOE currently publishes data on more than two dozen volatility-related benchmarks and strategies, including indexes that track broad-based indexes, sector and commodity-related ETFs, individual equities and others. Additional information on CBOE's volatility products can be found at www.cboe.com/Volatility.  

About CBOE CBOE, the largest U.S. options exchange and creator of listed options, continues to set the bar for options and volatility trading through product innovation, trading technology and investor education. CBOE Holdings offers equity, index and ETP options, including proprietary products, such as S&P 500 options (SPX), the most active U.S. index option, and options and futures on the CBOE Volatility Index (the VIX Index). Other products engineered by CBOE include equity options, security index options, LEAPS options, FLEX options, and benchmark products such as the CBOE S&P BuyWrite Index (BXM). CBOE Holdings is home to the world-renowned Options Institute and www.cboe.com, the go-to place for options and volatility trading resources.

CBOE-OE

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Submit an article to us!
SYM TRADE IT LAST %CHG

Markets

DOW 17,864.81 -63.39 -0.35%
S&P 500 2,095.34 +5.88 0.28%
NASDAQ 4,954.0020 +14.6750 0.30%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs