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Crash Got You Shaking With Anxiety? The CBOE Will Allow You To Put Your VIX Positions On 20 Minutes Earlier

Tyler Durden's picture




 

It may not be quite the Lehman weekend when the first ever Sunday CDS trading allowed pros to get out of Dodge early, but those who can't wait to put some insurance on against the market crash that is currently roiling the world, with everything tumbling in what is becoming a carbon copy replica of 2008, will be able to do so 20 minutes earlier. The CBOE has announced that"beginning on Monday, September 26, the CBOE Volatility Index (VIX) futures contract opening time moves to 7:00 a.m. from 7:20 a.m., pending regulatory approval. The 3:15 p.m. closing time for VIX futures remains unchanged. The earlier opening offers market participants more time to establish or offset VIX futures positions surrounding potential market-moving events - overnight news, banking actions or key economic reports - before the general market opens." Judging by /ES, something tells us the line around the block to put these on will be longer than for the new iPhone if and when it comes.

Full release:

CBOE Futures Exchange, LLC (CFE) today announced that beginning on Monday, September 26, the CBOE Volatility Index (VIX) futures contract opening time moves to 7:00 a.m. from 7:20 a.m., pending regulatory approval. The 3:15 p.m. closing time for VIX futures remains unchanged.

 

The earlier opening offers market participants more time to establish or offset VIX futures positions surrounding potential market-moving events - overnight news, banking actions or key economic reports - before the general market opens.

 

CFE first established extended trading hours for VIX futures in December 2010 when the opening time moved to 7:20 a.m. from 8:30 a.m. (Chicago time).

 

The 7:00 a.m. opening time applies to VIX futures only. All other CFE products maintain current trading hours - 8:30 a.m. to 3:15 p.m. (Chicago time). For more information on new extended trading hours, see CFE Information Circular CFEIC11-053 at http://cfe.cboe.com/aboutcfe/infocirc.aspx.

 

CFE currently offers five different contracts: CBOE Volatility Index (VIX) futures, Mini VIX (VM) futures, CBOE Gold ETF Volatility Index futures (GVZ), CBOE S&P 500 3-Month Variance futures (VT) and Weekly Options on Mini VIX futures (VOW).

 

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Mon, 09/26/2011 - 03:00 | 1709771 CapitalistRock
CapitalistRock's picture

Bernanke spent his whole life studying how to fight deflaton. So why is he behind the curve?

Something is just absolutely rotten with silver. I highly recommend you start accumulating more physical now and every time it drops another dollar. You will NOT see these prices in 5 years.

Mon, 09/26/2011 - 03:18 | 1709817 narnia
narnia's picture

how exactly does Bernanke make piles of worthless worldwide government promises valuable?

Mon, 09/26/2011 - 04:00 | 1709950 ManufacturedOpinion
ManufacturedOpinion's picture

Uh - no ... he spent his whole life studying how to give more of our money to the Tribe.

Agree with the 2nd part though - Every time it drops 5% just convert 1% more of your net worth from FRN to silver.

"All the way down and halfway up the other side."

Mon, 09/26/2011 - 05:35 | 1710241 dvsteenk
dvsteenk's picture

Central Bankers are always behind the curve, and deflation seems inevitable, so i would recommend the opposite of what you're suggesting

of course you're only protecting your portfolio - I have silver, it's dropping like a stone, buy silver, right?

behind every comment here there's an underlying personal agenda that often has the opposite goal of what is being recommended

Mon, 09/26/2011 - 07:14 | 1710314 CapitalistRock
CapitalistRock's picture

I bought at 26.50 for a small profit right before posting that. Sorry you missed the ride.

Mon, 09/26/2011 - 10:58 | 1711219 Clearly_Irrational
Clearly_Irrational's picture

Strangely enough because he doesn't understand the monetary system correctly.  He's still locked into a classical gold based economics model while he's using a fiat currency.  The two are not compatible.

Mon, 09/26/2011 - 03:04 | 1709775 HedgeAccordingly
HedgeAccordingly's picture

wow.. interesting -

this silver chart looks fine.. 12 percent moves in 2 hours are normal - nothing going on here - http://www.hedgeaccording.ly/2011/09/silver-futures-down-over-10-percent... .. 

Mon, 09/26/2011 - 03:35 | 1709852 foofoojin
foofoojin's picture

london will open soon. that what tells us if we hit the floor.

Mon, 09/26/2011 - 03:48 | 1709891 IrritableBowels
IrritableBowels's picture

German DAX is rallying.

Mon, 09/26/2011 - 05:39 | 1710248 dvsteenk
dvsteenk's picture

some "human" trading action in BNP Paribas shares this morning:

open at 24.00 euro at 9:00

reach intraday maximum at 27.50 at exactly 11:00

I wonder how many real trades were part of the somewhat 5M shares "exchanged" to reach those nicely rounded number targets...

perfectly efficient markets

 

 

Mon, 09/26/2011 - 03:05 | 1709779 Flatchestynerdette
Flatchestynerdette's picture

7am will do nothing to stop fruntrunning the fruntrunners. It will just happen 20 minutes earlier which means the trains will be fuller at 6am instead of the 6:30.

Mon, 09/26/2011 - 06:25 | 1710278 CPL
CPL's picture

I was thinking the same thing.  Just because the farmer opens the pens earlier, just means the cattle end up crushing each other earlier.  The HFT's are in full force though across the pond.

Mon, 09/26/2011 - 03:06 | 1709785 chump666
chump666's picture

markets will go bidless soon, so the futures market is getting ready for put/long VIX positioning (VM).

anyone who had the balls to buy up mini shorts...your time has arrived. 

Mon, 09/26/2011 - 03:10 | 1709795 Two Towers AU AG
Two Towers AU AG's picture

Looks like someone is desperately selling their gold/silver positions to raise cash.. there were margin hikes on Fri.. but this price correction looks more than that.. Guys..something evil this way walks...

Anyone wanna take a bet if PIGS FUK participate in a game of domino before the end of Oct.

Mon, 09/26/2011 - 03:24 | 1709826 delivered
delivered's picture

Agreed. I believe it was the Disney movie "Something Wicked this way Comes". Complete and total FUBAR with the markets right now. The only thing left that had markets were PMs and oil and it looks like liquidity has all but left the house. Everyone that has to sell now is FUBAR with the buyers learning valuable lessons of waiting in the wings until complete desperation sets in. Man not are there a bunch of parties left standing naked on the beach but even worse, they are grossly overweight wearing nothing but a thong speedo. Ugly doesn't even come close to describing this mess.

The bottom line (which you noted) is that there is so much selling going on (with no buyers) by parties in very difficult situations that it is causing the market (paper only) to crash. Somebody really needs to raise cash and in a hurry which I've got to figure relates to a bank in distress in Europe. We saw this same situation unfold in the US when LB and BS went under when PMs got crushed. There's just not anything left to sell other than PMs which really raises an interesting question. Sell assets of value to raise cash to inject into a bank that has no value (and leave capital sitting on their books doing nothing but supporting assets which are going to be worthless). Some fine use of capital to get the economy moving again wouldn't you say?

Mon, 09/26/2011 - 03:28 | 1709836 Aeonios
Aeonios's picture

JPMorgan wants to cover their shorts. There's a slight bounce occurring now, but there may be more action soon as they're hanging on the edge of a cliff with someone nudging them from behind with a gun.

Mon, 09/26/2011 - 03:18 | 1709808 JupiterAndBeyond
JupiterAndBeyond's picture

The whole liquidity argument is interesting until you realize the fact that the USD Index hasn't gone up THAT much to justify the MASSIVE sell-off. Something seems off.

Mon, 09/26/2011 - 03:46 | 1709875 Spirit Of Truth
Spirit Of Truth's picture

Agreed.  Seems like there's been an implosion of some sort that's currently hidden.  Undoubtedly, excessive leverage and derivatives will have played a part.  Notably....in terms of seasonality, we are in the same window almost to the day of the Panic of 1873.

 

Mon, 09/26/2011 - 03:57 | 1709940 fredquimby
fredquimby's picture

Is it not more the Swiss franc/Euro/Yen that are DOWN rather than the USD being up?!

 

 

Mon, 09/26/2011 - 03:24 | 1709825 RobertMugabe
RobertMugabe's picture

DAX is at 0 ? the fuck? Someone please explain http://www.bloomberg.com/markets

 

Mon, 09/26/2011 - 03:30 | 1709843 Aeonios
Aeonios's picture

Reuters reports just fine. It's all a beautiful shade of red. Solid, lovely red. Not even a little green peeking through anywhere.

Mon, 09/26/2011 - 03:30 | 1709842 DrStrangelove
DrStrangelove's picture

http://nationaleconomist.blogspot.com/2011/09/just-another-day-on-wall-s...

 

Just another day on Wall Street with police attacking protesters.

There will be no dissent, there will be no outrage, there will be no opposition... war is peace and freedom is slavery.

 

You stand where I tell you to, you say what I want you to say, when I want you to say it.

 

 

http://nationaleconomist.blogspot.com/2011/09/just-another-day-on-wall-s...

 

 

The attacking is disturbing, WHERE IS THE FREEDOM OF SPEECH, WHERE IS THE RIGHT TO PEACEFULLY ASSEMBLE?

Mon, 09/26/2011 - 07:35 | 1710339 Cynical Sidney
Cynical Sidney's picture

ignorance is strength

the kleptocracy is imposing fiat enslavement on the people. apprently the people chose so, as we collectively reached the stage of debt saturation. there cannot be displays of outrage and dissent, doing so inevitably leads up on a path toward revolution and subsequently a civil war or even a world war., an outcome invariably worse than the status quo.

It can be said from a sociologists perspective:

economic stratification destroyed the middle class and cultivated marxists' "Reserve army of labour"; capitalism and its efficient markets crumbled away under constant wars, along with monopolistic corporations and their teams of lawyers, lobbyists, banksters, who have been for years, infiltrating our democratic institutions, they exploited our democratic government, defrauded our efficient markets, and gamed the system to ruins. death of capitalism came about by the time obama took office back in 2008.

we are facing enormous challenges and there are no viable solutions, short of, well, nationalize the wealth of the richest 20% and then redistribute that wealth to repopulate the middle class, or purge bottom 20% of the poorest, the most unproductive. we keep going down the that path there will be revolutions and war, and it just might be too late to avert disaster. revolutions are too costly to the economy, as its conditions become ripe to create the 'inevitability of war', which would doom all of us.

CBOE is a sweet deal for those who choose to wield it. my question for you is, cui bono? looks like bold speculators got an edge over everyone else. other side of the coin can be interpreted as a nice way to catalyze a reaction of mutually destructive behaviors.

my conclusion, unemployed should all be commissioned daytraders right now, or something.

Mon, 09/26/2011 - 03:35 | 1709854 hunglow
hunglow's picture

Oddball: It's still up!
[a plane flies over the bridge and bombs it... direct hit]
Oddball: No it ain't.

Mon, 09/26/2011 - 03:47 | 1709884 lunaticfringe
lunaticfringe's picture

The banker class have ruined virtually every market and as everything begins to nosedive in one systemic deflationary collapse, I will be happy. These symptoms are way over due. I am praying for 21 silver, 1200 gold. And I fully expect to see a supernova move to the upside soon. Don't let these greedy pricks make you second guess yourself. Stand firm.

Mon, 09/26/2011 - 09:27 | 1710719 pelican
pelican's picture

I don't care how far gold drops and silver drops.

 

The point is I do not trust Wall Street or will ever do so again. I will not give another dime to those MFs.  The lastest reason not to trust them?  I wanted to transfer money in my IRA out of stocks over a week ago. I told the cs broker I wanted to move it into a safe investiment.  He said he had a stable one in "MORTGAGE BACKED SECURITIES".

I hope when this is done you Harvard business school fucks and bitchz wind up selling apples on the corner.

Mon, 09/26/2011 - 03:50 | 1709899 RagnarDanneskjold
RagnarDanneskjold's picture

Deflation paves the way for the currency crisis and this is just a foretaste of the deflation. We're just starting a year-long selling cycle here. I own phsyical will average down, but prices will collapse to very low levels. There are a lot of speculators, momentum buyers and inflationists who got smoked in 2008 and it will be way worse in 2011/2012. Watch the premiums at the metals dealers. We're seeing paper puke here and physical buyers accumulate because premiums are up, but in the next wave, I expect physical will puke. The bulls got to play around with stocks for 2 years, even though it was a rally on fumes and fiat. The bears are going to get their turn in the metals now, just be prepared mentally for what may be coming. 

The only caveat is a possible currency crisis for USD, as tax revenues collapse and the deficit soars. There will be another debt ceiling debate before the election and the outcome may be different the next time. This is why I hold physical, even though I anticipate steep declines from here, because the chance of an extreme rise is always sitting on the horizon.

Mon, 09/26/2011 - 05:26 | 1710230 ffart
ffart's picture

Hey, that reminds me of the elephant in the room here. How can the U.S. dollar be a flight to safety currency when the U.S. is flat broke and noone can afford to buy up all their debt?

Mon, 09/26/2011 - 05:34 | 1710239 ffart
ffart's picture

Furthermore, with treasury yields at pretty much rock bottom and all other assets obliterated how will there not be a massive bank run in the U.S. a year from now.

Mon, 09/26/2011 - 06:51 | 1710297 RagnarDanneskjold
RagnarDanneskjold's picture

The bank run happens because of a flight to cash/currency. U.S. money supply is mostly debt, so as the credit and asset values are destroyed, the amount of money in the system contracts. Peak money supply was in 2008, before the major crash started, but after the Fed starting pumping. As the debt declines, your paper assets lose value, those in debt will lose their assets unless they repay debt. There's a scramble for cash, it's not a flight to safety as much as a flight to keep from losing one's assets. The amount of debt/money in the economy will be much less when the deflation is finished, homes will be foreclosed and sold for half their value, bondholders will be wiped out, etc. People who haven't already will liquidate their 401ks to pay bills, etc. When it's over, or during the process, people will look at USG and notice it isn't cutting spending, and cannot sustain its debt with GDP down 10% or more, then the currency/sovereign debt crisis kicks off.

Mon, 09/26/2011 - 11:03 | 1711231 Clearly_Irrational
Clearly_Irrational's picture

The US is not broke, sure there are more promises on the books than could be reasonably kept but that's not the same thing.

Mon, 09/26/2011 - 05:26 | 1710229 ivars
ivars's picture

Silver went to 26 on Monday, amazing! Exactly where it was predicted to land in this time in this March prediction chart(25-32USD corridor in H2 2011).:

http://saposjoint.net/Forum/viewtopic.php?f=14&t=2626&st=0&sk=t&sd=a&start=40#p31020

and gold went to 1550! fantastic: Again, exactly where it was expected to be in this April prediction ( which predicted also the bubble-well I expected it to be there in November) - down to 1500-1600 in November 2011.And I expected bubble and crash in October- it happened in September..

http://saposjoint.net/Forum/viewtopic.php?f=14&t=2626&st=0&sk=t&sd=a&start=220#p32176

 But future looks bright in the charts. Silver to 100 USD in Q2 2012.

Mon, 09/26/2011 - 06:19 | 1710276 iNull
iNull's picture

Study Deuteronomy, specifically Chapter 31 & 32. This is all revealed.
God wants the best for us, but his patience is not without limits.

http://www.youtube.com/watch?v=_vHpu2NU4Bc

 

Sat, 10/22/2011 - 12:34 | 1800016 Dillip
Dillip's picture

We can't blame anyone but our greedy self is the real culprit. Economy is not controled by any particular person or organization. Yes, they prepare the basic guidelines but the main trend is set by our need, capabilities and ego. If we change our concept about economy, then it can't affect us.

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