Volatility, Reimagined
Volatility, Reimagined.
MIAX®'s SPIKES® Volatility Products, built on the SPDR® S&P 500® ETF (SPY)
are available on the Interactive Brokers platform.
SPIKES Key Features
The SPIKES Volatility Index (index symbol: SPIKE) is a measure of the expected 30-day volatility in the SPDR® S&P 500® ETF (SPY). The SPIKES Index uses live SPY options prices—traded on all U.S. options exchanges—to calculate volatility.
Extremely fast index calculation dissemination, publishing every 100 milliseconds, ensures pinpoint accuracy of market conditions. This proprietary technique uses a blend of trades, bids, and offer prices in the index calculation to insulate the index from erratic movements.
Learn more at miaxglobal.com/spikes.
Benefits
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Choice and Transparency
SPY options are traded on all U.S. options exchanges, and the SPIKES settlement auction is visible to all MIAX market participants. This enables market participants to arbitrage SPY option mispricings, enhancing the accuracy of the SPIKES index settlement value.
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Highly Competitive Exchange Fees
Affordably trade volatility thanks to highly competitive exchange fees that put the client first.
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Imbalance Messages
During the settlement auction, MIAX provides imbalance messages to all market participants for all components eligible to be included in the index settlement value calculation.
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Rich Data and Analytics
Visit spikesanalytics.com for settlement process analytics immediately following the auction
Example
To interpret what the SPIKES Index is communicating about the expected range of SPY over the next 30 days, divide the index level by the square root of 12 (3.46).
SPIKES Index at 30: Implies trading range of +/-8.7% over the next 30 days
SPY Trading Range: 30 ÷ √12 = +/-8.7%
SPIKES Index at 10: indicates SPY trading range of +/- 2.9%
SPY Trading Range: 10 ÷ √12 = +/-2.9%
While you can’t trade the Index directly, there are options, futures and ETFs available on the SPIKES Index.
| SPIKES Volatility Products | Symbol |
|---|---|
| SPIKES Index | Not tradable |
| SPIKES Options | SPIKE |
Why Trade SPIKES Volatility Products with Interactive Brokers?
Interactive Brokers (Nasdaq: IBKR) is an automated global electronic broker that serves individual investors, hedge funds, proprietary trading groups, registered investment advisors and introducing brokers.
Our four-decade focus on technology and automation allows us to provide our clients with a sophisticated, global trading platform with the lowest costs for managing investments. IBKR clients enjoy access to cryptocurrencies, stocks, options, futures, currencies, bonds, funds and more on over 160 markets in 36 countries.
Already a Client?
If you are an IBKR client with Options or Futures trading permission, you can already trade MIAX SPIKES Volatility Products. If you do not have these trading permissions, simply log in to Portal and click the User ("Head/Shoulders" icon) > Settings menu. From the Settings page, click Trading Permissions to request the trading permissions.
Trading permission requests are typically approved overnight.
Add PermissionDisclosures
Options involve risk and are not suitable for all investors. For more information read the Characteristics and Risks of Standardized Options, also known as the options disclosure document (ODD). To receive a copy of the ODD call 312-542-6901 or click here.
Any discussion or mention of an ETF is not to be construed as recommendation, promotion or solicitation. All investors should review and consider associated investment risks, charges and expenses of the investment company or fund prior to investing. Before acting on this material, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.