Can VIX Options Be Exercised?

VIX Options Can Be Exercised Only at Expiration

VIX options are European style, which means that they can be exercised only at expiration and not earlier.

VIX options are cash settled. This means two things:

  1. You don’t need to worry about ending up with an unwanted position in VIX after expiration.
  2. If you are holding a long position in VIX options and they are in the money (based on the settlement value), you will get cash credited to your account. Typically the cash is credited the day after VIX expiration day, usually on Thursday. VIX settlement value is published on the during the expiration day (usually an hour or two after markets open).

VIX Options Automatic Exercise

Generally, VIX options are automatically exercised if they are at least 0.01 in the money on expiration and you don’t need to give any instructions to your broker. However, you should check the expiration and settlement procedures with your particular broker – they may be different.

More Information about VIX Expiration and Settlement

VIX Options Settlement – basic information about VIX options settlement procedure

VIX Special Opening Quotation (SOQ) – explanation of VIX settlement value and the process how it is determined on the expiration day

VIX Options Expiration – the rules for determining the last trading day and expiration day of VIX options and futures

VIX Expiration Calendar (Futures & Options) for this and the next year + full history of VIX expiration dates

VIX Options – the main page for VIX options with basic introduction, contract specifications, and links to various resources

VIX – all resources for the VIX index and its derivatives

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