VIX Options Expiration Rule
VIX options (options on CBOE Volatility Index) expire on the Wednesday that is 30 days before the third Friday of the following calendar month. If there are public holidays, the expiration is on the business day before.
Why this complicated expiration rule?
The VIX measures expected volatility of S&P500 index in the next 30 days. On the expiration date of VIX options, the VIX reflects the volatility implied in the S&P500 options that have exactly 30 days to expiration (the third Friday of the following calendar month).
VIX Options Last Trading Day
The last trading day of VIX options is on the business day before the expiration date – usually on Tuesday.
VIX Options Exercise-Settlement
VIX options are European style, which means that they can be exercised only at expiration.
VIX options are cash settled. The settlement value of VIX is determined by the so called Special Opening Quotation (SOQ), which is calculated based on opening prices of S&P500 options on VIX option expiration.
The cash is delivered on the business day following expiration.
For more information see VIX Options Settlement.
VIX Options Expiration Calendar
Here you can find VIX options expiration calendar and all-time expiration dates history.