The New Volatility Futures by Larry McMillan
ARTICLE SYNOPSIS ...The New Volatility Futures by Larry McMillan
They just might be the stock owner's delight.
The CBOE has created a new futures exchange
(the CBOE Futures Exchange, or CFE) to trade
volatility products. Its first and only product
at this time is futures on VIX, the CBOE
volatility index, but the CBOE plans to introduce
more volatility-related products soon.
Some traders might dismiss these products as simply an
opportunity for option-crazed investors. But in reality, these
products will find application for a far wider audience than
speculators: stock owners can benefit from the ability to