The Volatility Index has taken the world by storm. So what is CBOE’s next trick? Theo Casey hears it’s a new skew indicator. But what can skew tell us – and is there a market for it? Perhaps it should be seen and not traded…
The Volatility Index has taken the world by storm.
So what is CBOEs next trick? Theo Casey
hears its a new skew indicator. But what can skew
tell us and is there a market for it? Perhaps it should
be seen and not traded...
Bill Brodsky stands at a crossroads. He looks up and sees two
Left: Amass large trading volume with deep fee
Right: Attempt to muscle in on rivals most
Bill, and the Chicago Board Options Exchange, forsake both
alternatives and forge their own path.
This may be unfair to Nasdaq OMX PHLX king of the
dividend arbitrage strategy, stimulated by flat fees, in which
market makers can harvest dividends from unexercised options
and to the International Securities Exchange, which
battled CBOE for four years for the right to list competing
Standard & Poors and Dow Jones index options.
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