ETF Ventures

VolDex® (VOLI)

ISE and ISE Gemini were the first options exchanges to enter into a licensing agreement with NationsShares®, a leading developer of option-enhanced and option-based indexes, to list options on the Nations VolDex® index. The Nations VolDex measures broad market implied volatility by way of at-the-money SPY options. In addition to its licensing agreement, NationsShares will evaluate opportunities to license the index as the basis for other exchange-traded products, including options, futures and ETFs.

 

Additional Links:

Read the product sheet for VolDex Indexes here.

Download VolDex Historical Data.

View the Press Release.

Visit the NationsShares website here.

 

For More details on the VolDex Index please see our Frequently Asked Questions (FAQs):

FAQs
What is the news?

 

ISE and ISE Gemini have entered into a license agreement with NationsShares to list cash-settled options on the Nations VolDex, a proprietary index developed and owned by NationsShares.

 

Who is NationsShares?

 

NationsShares is a firm engaged in the creation and development of unique options-based indexes. The firm is led by Scott Nations, a veteran of the options industry, on-air expert, and co-host of CNBC's Options Action.

 

What does the VolDex Index measure?

 

The index measures the real-time implied volatility of the SPDR 500 ETF, commonly known by its ticker symbol SPY.

 

What is SPY?

 

SPY is the largest (by assets under management) and most liquid (by volume of shares and volume of options contracts) exchange-traded fund in the US.

 

How does VolDex measure implied volatility of SPY?

 

VolDex uses a methodology that focuses on at-the-money SPY options for the two nearest monthly expirations. Implied volatility for precisely at-the-money puts is derived from that data and represented in percentage points to create an index.

 

How can one trade VolDex?

 

Pending regulatory approval, investors and traders can use cash-settled, European-style options based on the index to execute volatility-based strategies.

 

When will the options be made available to investors?

 

ISE and ISE Gemini recieved SEC approval to list options on the index in Jan. 2014. The product is expected to be availble later this year.