What Is VIX Options Trading?

The VIX is an index on the overall implied volatility of the S&P 500 with 30 days to expire. It weights those options based on the total amount of vega left in the option and then basically produces an overall volatility for the S-P 500 out 30 days. The VIX futures are European sell, which means there's no early exercise. When volatility is high, we tend to actually see the VIX trade at a premium to the VIX futures.