VIX options contracts averaged nearly 760,000 daily, surpassing the record set in 2017, according to Cboe Global Markets (CBOE.Z), data as of Nov. 27.
Such investors are "looking at trading VIX options as a way to potentially monetize their thinking", he said.
Reuters GraphicsThe rise in VIX options trading is a change from 2022 when investors were reducing equities exposure and hoarding cash, according to CBOE data.
With the VIX averaging 17 this year, VIX options' trading volume as a share of overall options volume is at 1.76%, the highest since 2020 - a much more volatile year when the VIX averaged 29, according to a Reuters analysis based on Trade Alert data.
Timing profit-taking on VIX options in an environment where jumps in the volatility index are fleeting can be difficult, said Roni Israelov, chief investment officer at NDVR.
Persons:
Carlo Allegri, Mandy Xu, That's, Joe Ferrara, JJ Kinahan, Seth Hickle, Roni Israelov, Laura Matthews, Saqib Iqbal Ahmed, Megan Davies, Chizu
Organizations:
New York Stock, REUTERS, . Federal, Cboe Global, Gateway Investment Advisers, Reuters, Trade, Thomson
Locations:
Manhattan, New York City , New York, U.S, Indiana, New York