UPDATE 1-CBOE Futures Exchange launches first VIX options

* Launches first options contract

* Aims to launch the options on Sept 28

* Says launch is subject to regulatory approval
(Adds details)

Sept 9 (BestGrowthStock) – CBOE Futures Exchange LLC said early on
Thursday that it will launch its first weekly options on its
volatility futures contract, which would expand the exchange’s
portfolio of derivative contracts tied to market volatility.

The weekly options on volatility (VIX) futures — with the
ticker symbol “VOW” — will now be available on CBOE’s
electronic technology platform, the company said.

Weekly options on VIX futures will have four consecutive
contracts with weekly expirations, and the exchange will add a
new contract when the near-term contract expires.

“We see the contract being used in a number of ways — as a
shorter term play on implied volatility that is independent of
the direction and level of stock prices, to hedge equity returns
and to diversify portfolios,” the exchange’s Managing Director
Andrew Lowenthal said.

CBOE’s volatility index (.VIX: ) is a barometer of investor

CBOE Futures Exchange is a unit of CBOE Holdings Inc
(CBOE.O: )
(Reporting by Sakthi Prasad in Bangalore )

UPDATE 1-CBOE Futures Exchange launches first VIX options