Might Correlation be the Key to Understanding VIX?

What sort of topics arise when two options market veterans sit down for a conversation?  Volatility, correlation, bonds, and of course, 0DTE and Volmageddon.  For the latest IBKR Podcast, Mandy Xu, VP and head of derivatives markets intelligence at Cboe, joins Steve Sosnick, chief strategist at IBKR, to discuss these topics and much, much more.

Useful Links:   

VIX Definition: From VIX Index (cboe.com) : “The VIX Index is a calculation designed to produce a measure of constant, 30-day expected volatility of the U.S. stock market, derived from real-time, mid-quote prices of S&P 500® Index (SPX℠) call and put options.” 

An explainer about the differences between cash settled index options and equity options that deliver underlying shares: Understanding Index Options | Traders’ Insight (ibkrcampus.com) 

Cboe Implied Correlation index Indices: Implied Correlation (cboe.com) 

Cboe® iBoxx® iShares® Corporate Bond Index Futures and Options on Futures: IBHY/IBIG-Cboe Corporate Bond Index Futures 

Cboe White Paper: The Rise of SPX & 0DTE Options (cboe.com) 

Options involve risk and are not suitable for all investors. Multiple leg strategies, including spreads, will incur multiple commission charges. For more information read the “Characteristics and Risks of Standardized Options” also known as the options disclosure document (ODD) or visit ibkr.com/occ