Watch out for commodity vol products

Commodity traders shouldn't ignore the recent meltdown in CBOE’s Vix derivatives, writes energy consultant

volcanic eruption

During the afternoon of February 5, 2018, the derivatives market in the Chicago Board Options Exchange’s flagship Vix equity volatility index imploded, causing billion-dollar losses to professional and retail investors. Some volatility derivatives funds lost more than 90% of their value; others permanently shut down, deleveraged, or were closed temporarily to retail investors.

However, just because the meltdown occurred in equity derivatives does not mean it can be ignored by energy and

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact info@risk.net to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Risk.net? View our subscription options

Register

Want to know what’s included in our free membership? Click here

This address will be used to create your account

Digging deeper into deep hedging

Dynamic techniques and gen-AI simulated data can push the limits of deep hedging even further, as derivatives guru John Hull and colleagues explain

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here