U.S. investors will be getting a new stock-market fear gauge on Monday when the Cboe rolls out an index that will track implied volatility using option contracts with less than one day left until expiration.
The new product, the Cboe 1-day Volatility Index, will be disseminated beginning Monday, according to a notice on Cboe’s website. The launch was first reported by Bloomberg News. Cboe didn’t return a request for comment from MarketWatch. See: Is the VIX ‘broken’? Here’s why Wall Street’s ‘fear gauge’ no longer reflects the sorry state of stocks
Most 0DTE trading is done using option contracts linked to the S&P 500, or the SPDR S&P 500 exchange-traded fund SPY , according to data from Goldman Sachs Group GS . But investors can trade weekly option contracts expiring every day of the week in other popular equity indexes, including the Nasdaq-100-tracking Invesco QQQ Trust Series ETF QQQ .Trading in 0DTEs has climbed to 43.