Do VIX futures trade overnight?
VIX futures are available for trading nearly 24 hours a day, five days a week at CFE, beginning Sunday at 5:00 p.m. CT and ending Friday at 3:15 p.m. CT.
| Type of Trading Hours | Monday - Friday |
|---|---|
| Extended | 5:00 p.m. (previous day) to 8:30 a.m. |
| Regular | 8:30 a.m. to 3:00 p.m. |
| Extended | 3:00 p.m. to 4:00 p.m. |
VIX Expiration Rules
The last full trading day is always the day before = usually Tuesdays. Expiring futures contracts cease trading at 8:00 am Chicago time / 9:00 am New York time on the final settlement day.
Introduced in 2004 on Cboe Futures Exchange℠ (CFE®), VIX futures provide market participants with the ability to trade a liquid volatility product based on the VIX Index methodology. VIX futures reflect the market's estimate of the value of the VIX Index on various expiration dates in the future.
Cboe Options Exchange has extended global trading hours (GTH) for S&P 500® Index (SPX) options and Mini-SPX Index (XSP) options to nearly 24 hours a day, five days a week.
With E-mini Nasdaq futures you can trade nearly 24 hours a day during the trading week and take advantage of potential trading opportunities regardless of market direction.
Futures markets are open nearly 24 hours a day, six days a week. But keep in mind that each product has its own unique trading hours.
The VIX Settlement Process
The final settlement value for VIX futures is disseminated using the ticker VRO. The last trading day for VIX Futures is the day before settlement so a contract that is due to expire on Wednesday morning will cease trading at 3:15 pm Chicago time the day before settlement.
Similar to the expiration date, the final settlement time varies by product. For example, natural gas options on futures cease trading at 2:30 p.m. ET, when the outright futures contract settlement price is determined. However, the Monday weekly options on futures for the E-mini S&P 500 expire at 4 p.m. ET.
"If the VIX is high, it's time to buy" tells us that market participants are too bearish and implied volatility has reached capacity. This means the market will likely turn bullish and implied volatility will likely move back toward the mean.
Can I trade futures with $100?
If you are starting with a small amount of capital, such as $10 to $100, it is still possible to make money on futures trading. Here are a few tips: Choose volatile assets. Volatile assets are those that move in price quickly.
1. Regular Trading Hours: The CBOE VIX Index futures trade during regular trading hours from 8:30 a.m. To 3:15 p.m. Central Time (CT). This means that if you want to trade VIX futures, you'll need to do so during these hours.
This is very common in VIX futures – in the long run, contango occurs vast majority of time, which is due to the skewed and mean reverting nature of the VIX and volatility in general (long time at low levels, with occasional big but mostly short-lived spikes).
Some traders follow something called the "10 a.m. rule." The stock market opens for trading at 9:30 a.m., and the time between 9:30 a.m. and 10 a.m. often has significant trading volume. Traders that follow the 10 a.m. rule think a stock's price trajectory is relatively set for the day by the end of that half-hour.
Most trading in the U.S. happens between 9:30 a.m. and 4:00 p.m. ET, during regular stock market hours. After hours options trading happens after the markets have closed. Retail traders can sell and buy options after hours — between 4 p.m. and 8 p.m. ET — but special rules apply during this period.
If you want to do equity trading, the after-hours trading takes place from 4:00 PM to 8:55 AM for BSE and 4:00 PM to 8:55 AM for NSE. And if you want to trade in derivatives such as Future and Options (F&O), the after-hours trading takes place between 4:00 PM and 8:55 AM .
Futures markets are able to be traded virtually 24 hours a day, 6 days per week. Each futures product has their own times to trade. What Hours Do S&P Futures Trade? E-mini S&P 500 futures markets are open from 6:00 pm EST to 5:00 pm EST and trade on the CME Globex platform.
In addition to offering market access almost 24 hours a day, a major benefit of trading E-mini S&P 500 futures is the high liquidity level. The bids-to-offer spreads are consistently tight.
With E-mini Dow futures you can trade nearly 24 hours a day during the trading week and take advantage of potential trading opportunities regardless of market direction.
“A simple strategy would be to buy E-mini S&P 500 futures around 11:30 p.m. and sell them around 3:30 a.m. if the stock market dropped a lot during the prior U.S. trading day. Most brokers let you submit time-specific orders in advance, so you do not have to wake up in the middle of the night.”
What is overnight in futures?
Overnight trading, also known as 'extended-hours trading,' refers to buying or selling stocks beyond the regular trading hours of the Indian stock market. In India, standard trading hours on exchanges like the NSE and the BSE typically run from 9:15 a.m. to 3:30 p.m. (IST).
Overnight trading refers to trades that are placed after an exchange's close and before its open. Overnight trading hours can vary based on the type of exchange on which an investor seeks to conduct trades. Overnight trading is an extension of after-hours trading (also known as extended-hours trading).
According to the rule of 16, if the VIX is trading at 16, then the SPX is estimated to see average daily moves up or down of 1% (because 16/16 = 1). If the VIX is at 24, the daily moves might be around 1.5%, and at 32, the rule of 16 says the SPX might see 2% daily moves.
Investors may trade in the Pre-Market (4:00-9:30 a.m. ET) and the After Hours Market (4:00-8:00 p.m. ET).
So, there are two main strategies traders can employ to sell VIX using options. They are selling naked calls or call spreads. Selling a naked call can yield the highest premium, but the risk could theoretically be unlimited. To define the risk, traders can opt for a call spread.
