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Investments glossary

VIX Option

A VIX option is a non-equity index option that uses the CBOE Volatility Index as its underlying asset. Call and put VIX options are both available. The call options hedge portfolios against a sudden market decline, and put options hedge against a rapid reversal of short positions on the S&P 500 index. These options thus allow traders and investors to speculate on future moves in volatility.

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