In represent approximately 30% of all SPX options volume.

In 2006, CBOE introduced for the first time ever options written on the
VIX index. Options are products that are traded in exchanges and in the over
the counter market. There are two categories of options. The first one are the
call options and the second one the put options.  A call option gives the holder the choice but
not the obligation to buy the underlying asset at a fixed date and at a certain
price. On the other hand, a put option gives the holder the choice but not the obligation
to sell the underlying asset at a fixed date and at a certain price. Both call
and put options are written on an underlying asset. The VIX options are written
on the VIX index. Investors who believe in the increase of the market volatility
can buy VIX calls and take advantage of that move. On the other hand, many
investors use VIX options as hedging tools. An investor can choose among many
strategies (bull1,
bear2
etc.) which is the most profitable.

VIX options have some distinct characteristics which make them different
from the other index options. Some of those characteristics are the following.
The pricing of VIX option is based on forward VIX value. The settlement takes
place every Wednesday. Furthermore, there is a negative correlation to the stock
index. And the option have a high volatility of volatility.

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On October 8,
2015 VIX Weeklys options began trading at Chicago Board Options Exchange, Incorporated
(CBOE®). Today, SPX Weeklys account for one-third of all SPX options traded,
and average over a quarter of a million contracts traded per day. SPX Weeklys
currently represent approximately 30% of all SPX options volume.

1 Bull spread is a speculative
strategy for which the investors buy one option with the low strike price and
sell one option with the high strike.

2 Bear spread is a speculative
strategy for which the investors sell one option with the low strike price and
buy one option with the high strike

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