List of Financial Market Terms

A VIX option is a non-equity option using CBOE Volatility Index as it's underlying asset. this option gives Traders that power to trade market volatility, and many use this to hypothesize future volatility moves.

Purchasing VIX call options is one way for a Trader to hedge his futures trading and options trading portfolio, and make a profit when he foresees an increase in market volatility.

Related terms: VXN, VXD, LIBOR OIS Spread, TED Spread

Open a thinkorswim by TDA account today!