VolQ starting in October. The new VIX?

[Overnight]

I guess it was just a matter of time. Now the CME has it's own funky chicken.

https://www.cmegroup.com/trading/equity-index/us-index/volq.html

Thoughts?

I like the idea. Pretty much same specs as CBOE's VIX as far as can be told this early. Performance Bond requirements not known yet though.

 

[maxinger]

personality I don't find CBOE vix great for day trading.
perhaps the professional writers and talkers have overhyped how useful it is.
it might be ok for swing trading.

there are many other volatility indices
(eg eurex vstoxx mini index futures). not that great for day trading due to low volume.

 

[Overnight]

personality I don't find CBOE vix great for day trading.
perhaps the professional writers and talkers have overhyped how useful it is.
it might be ok for swing trading.

there are many other volatility indices
(eg eurex vstoxx mini index futures). not that great for day trading due to low volume.

It will be an interesting examination, as it will be an easily-accessible vola future through the CME, which would provide margin offsets against the NQ, far as I can tell.

 

[maxinger]

It will be an interesting examination, as it will be an easily-accessible vola future through the CME, which would provide margin offsets against the NQ, far as I can tell.

it will be launched on 5 Oct.
I will definitely see if there are day trading opportunities.

 

[Same Lazy Element]

I’d bet that it will be DOA - there is too much liquidity in VIX and it’s hard to push liquidity elsewhere. Of course, if and when it materializes, I’ll try to get involved.

 

[tiddlywinks]

Revisionists take note... February 2018, Volmaggedon.

https://www.bloomberg.com/news/articles/2019-02-06/the-day-the-vix-doubled-tales-of-volmageddon

 

[Overnight]

I’d bet that it will be DOA - there is too much liquidity in VIX and it’s hard to push liquidity elsewhere. Of course, if and when it materializes, I’ll try to get involved.

I remember some folks here saying the e-micro equity futures would fail also. Now they are pushing more volume than the e-minis. Hmmm.

 

[maxinger]

I remember some folks here saying the e-micro equity futures would fail also. Now they are pushing more volume than the e-minis. Hmmm.

View attachment 237462

It is quite common to see smaller size contracts having lower volume.
that include futures like

Hangseng
dax
Nikkei

note that one dax contract requires 50k euro margin.

ie there are lots of big players out there.

 

[Overnight]

It is quite common to see smaller size contracts having lower volume.
that include futures like

Hangseng
dax
Nikkei

ie there are lots of big players out there.

The smaller sized contracts are having higher volume in the example above. Except for YM, because I am long in the MYM.

 

[LanceJ]

Has anyone hedged their QQQ option volatility with this? Say you wanted only directional exposure with your options.