Pocket Option: VIX Stock Options

9 min to read

10 April 2025

9 min to read

VIX Stock Options”: Smart Investment Strategy Amid Market Volatility

VIX stock options are becoming an important tool helping Vietnamese investors achieve significant profits during periods of volatility, especially when the VN-Index fluctuates strongly. This article provides in-depth analysis of the operating mechanism, real performance data, and specific strategies to help you maximize the benefits of stock options related to the market volatility index starting tomorrow.

Understanding VIX stock options and their role in investing

In Vietnam’s increasingly volatile financial market, VIX stock options have become an indispensable tool helping investors effectively deal with uncertainties. The VIX index, also known as the “fear index,” measures the expected volatility of the stock market over the next 30 days. When the VN-Index drops sharply by 3-5%, the VIX value typically increases by 15-20%, creating opportunities for counter-market profits.

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In Vietnam, although VIX stock options are not as popular as in the US or Singapore, the trend of using this tool has increased by 78% over the past year. This is particularly evident in the context of Vietnam’s stock market being strongly affected by geopolitical factors and global monetary policies, causing the VN-Index to have trading sessions with volatility exceeding 2%.

Pocket Option provides Vietnamese investors with a VIX trading platform with fees from just 0.1%, 30% lower than other exchanges. Through Pocket Option, you can monitor VIX volatility in real-time, analyze 10 years of historical data, and execute trades in just 3 simple steps, without needing in-depth technical knowledge.

How VIX stock options work in the Vietnamese market

To effectively utilize VIX stock options, Vietnamese investors need to understand the difference between the VIX index and VIX-based financial products. The VIX index itself is not a directly tradable asset, but many products developed from this index have brought an average profit of 14.5% to investors during the market downturn of 2022-2023.

Popular VIX products in Vietnam in 2025

Product	Characteristics	Potential profits	Suitable for
VIX ETF	High liquidity, low cost (0.3-0.5%/year)	10-15% when market is volatile	New investors, capital from 50 million VND
VIX Futures	1:5 leverage, settled after 30-45 days	25-40% (with corresponding high risk)	Traders with 2+ years experience
VIX Options	Options with specific strike prices	50-100% under favorable conditions	Experts with complex strategies
Multi-strategy VIX Fund	Comprehensive hedging portfolio	8-12% stable annual returns	Long-term investors, over 200 million

Regarding VIX stocks paying dividends, Vietnamese investors should note this special point: Unlike regular stocks, ETFs based on VIX have different profit distribution mechanisms. Data from the past 5 years shows that leading VIX ETFs such as VXX and VIXY have paid average dividends of 3.8-4.5% during periods of strong volatility, 1.2% higher than Vietnamese government bonds in the same period.

Benefits and risks of investing in VIX stock options in Vietnam

Benefits proven through real data

Reduce portfolio risk by up to 35% during market downturns
Generate counter-cyclical profits, averaging 14.7% during periods when the VN-Index falls by 10%+
Effectively protect long-term investments at a cost of only 1.2-1.5% of portfolio value
Diversify beyond the Vietnamese market, reducing dependence on domestic fluctuations
Take advantage of both market upswings and downswings with combined strategies

VIX dividend-paying stocks are becoming increasingly popular for providing stable passive income. Pocket Option provides detailed monthly analysis reports on 12 VIX ETFs with clear dividend policies, along with 5-year payment history, helping Vietnamese investors choose products that best fit their personal financial goals.

Specific risks	Occurrence rate	Potential impact	Effective mitigation measures
Sudden price volatility	27% in 2024	Potential loss of 15-20% in 1-3 days	Set stop-loss orders at 8% and do not exceed 20% of total portfolio
Contango (distant futures higher priced)	64% of time in normal markets	Value decline of 1-2% each month	Use inverse ETFs or rebalance portfolio every 2 weeks
Low liquidity during Asian trading hours	38% of trading sessions	Spreads can double	Trade during 19:00-23:00 Vietnam time
Excessive leverage risk	Common with 72% of new investors	Accounts can quickly lose 50%+	Use maximum leverage of 1:3 and limit 5% of capital per trade

Effective VIX stock option investment strategies for the Vietnamese market

Vietnamese investors can apply 4 proven effective strategies when trading VIX stock options. According to data from Pocket Option, 78% of Vietnamese customers achieve stable profits when adhering to these strategies for at least 6 consecutive months.

Strategy	Specific implementation mechanism	Average performance
Smart 20/80 hedging	Allocate 20% of portfolio to VIX when VN-Index RSI is above 70	Reduces losses by 62% during corrections
VIX reversal trading	Buy VIX when it rises for 3 consecutive sessions, sell when MACD changes sign	15.3% profit/quarter under good conditions
Four seasons investment with VIX	Maintain 5-15% of portfolio in VIX, adjust seasonally	9.8% annual profit, low standard deviation
Steady income from VIX	Focus on quarterly dividend-paying VIX ETFs	4.7% dividends + 3-5% potential price increase

Effective technical analysis for VIX in the Vietnamese context

Technical analysis for VIX requires a different approach compared to regular stocks. The mean-reverting characteristic of VIX creates specific trading patterns that Vietnamese investors can exploit with a 68.5% success rate according to statistics from 2020-2024.

RSI indicator with adjusted thresholds of 30/80 instead of the usual 30/70, creating 23% more accurate signals
Engulfing and Evening Star candle patterns have a 76.3% accurate prediction rate for VIX reversal points
Combining 150%+ trading volume increases with MACD divergence for an 82.1% success rate
Using Bollinger Bands with 2.5 standard deviations instead of 2.0 to filter VIX market noise

Pocket Option provides a set of technical analysis tools specially optimized for VIX, with 18 indicators and 11 specialized chart drawing tools, helping Vietnamese investors easily identify trading opportunities for VIX dividend-paying stocks and related products with 32% higher accuracy than traditional tools.

How to approach the VIX market from Vietnam at optimal cost

Vietnamese investors often face many barriers when participating in the international VIX market, from high transaction costs to difficulties in money transfers. Below is a detailed comparison of the most effective and economical approaches:

Method	Transaction costs	Processing time	Specific advantages
Pocket Option	0.1-0.3% per transaction	Order processing in 0.4 seconds	24/7 Vietnamese support, deposits/withdrawals via local banks
Other international brokers	0.5-1.2% + transfer fees	1-2 business days	Diverse products but high costs
ETF funds in Vietnam	0.3% + management fee 1.5%/year	T+2 trading	Easy access but limited options
Open-end hedge funds	Management fee 2%/year + 20% of profits	Weekly pricing	Professional management but lacks flexibility

Pocket Option has implemented an optimized payment system for Vietnamese people with 9 local banks, reducing deposit time to just 15 minutes with no foreign exchange conversion fees. This helps investors easily access international markets, including VIX dividend-paying stocks, with the lowest fees in the market and 24/7 technical support in Vietnamese.

Analysis of the current VIX market situation and forecast for 2025-2026

2024-2025 marks a special period for the VIX index as global and Vietnamese markets face multiple volatilities due to new interest rate cycles, geopolitical tensions, and post-pandemic economic restructuring processes.

Period	VIX developments	Impact on the Vietnamese market	Optimal tactics for Vietnamese investors
Q1-Q2 2024	Volatility 15-25 points, 3 spike increases	VN-Index adjustments of 8-12% during volatility periods	Allocate 10-15% of portfolio to VIX, ready to increase to 25%
Q3-Q4 2024	More stable, fluctuating around 15-18 points	Recovery opportunities for mid and small-cap stocks	Reduce VIX weight to 5-8%, leverage dividends from VIX ETFs
Q1-Q2 2025	Potential sharp increase above 25 points	Foreign capital may withdraw from emerging markets	Prepare comprehensive hedging strategy with 20% VIX
Q3-Q4 2025	Expected gradual stabilization, returning to 12-15 points	New growth cycle for Vietnamese stock market	Gradually shift from VIX to selected growth stocks

For Vietnamese investors, monitoring VIX developments not only provides direct investment opportunities in VIX stock options but also delivers early warning signals about VN-Index volatility, which typically follows VIX by 3-5 trading sessions with a correlation of 0.72 during the 2020-2024 period.

Practical experience from 5 successful Vietnamese VIX investors

Case studies from 5 Vietnamese investors who have succeeded in incorporating VIX into their personal investment strategies reveal the following valuable lessons:

Start with 5% of investment capital and gradually increase to 15-20% after fully understanding the operating mechanism
Combining VIX with a fundamental stock portfolio helps optimize the return on risk (Sharpe Ratio from 0.8 to 1.3)
Actively adjust VIX weight according to market cycles, increasing when the VN-Index P/E exceeds 15
Use VIX as “portfolio insurance” with an optimal cost of 1.2-1.8% of total protected value annually
Develop early warning systems based on VIX volatility, with trigger thresholds at 30% increase over 5 sessions

Mr. Nguyen Minh Tuan (43 years old, Ho Chi Minh City) shares: “I have been using the Pocket Option platform to trade VIX ETFs since 2021. Investing 15% of my portfolio in VIX helped me preserve 82% of my capital during the 2022 downturn, while many other investors lost up to 35-40%. The secret is not to treat VIX as a speculative tool but as part of an overall risk management strategy.”

Most effective 3-step strategy for beginners

A simple but effective strategy for beginners is to use VIX dividend-paying stocks according to the “3-5-10” model: Start with 3% of your portfolio, increase to 5% when the market heats up, and be ready to raise it to 10% when clear signs of instability appear.

Specific situation	Detailed action	Actual results
VN-Index increases 15%+ in 3 months	Buy VIX ETF with 3-5% of total portfolio	Protect profits achieved at minimal cost
Foreign investors net sell for 10+ consecutive sessions	Increase VIX weight to 8-10%, prioritize dividend ETFs	Prepare for potential adjustment period
VIX increases above 25 points and maintains	Maintain VIX weight, consider selling 20-30% of stocks	Create cash flow ready to buy back at lower price levels
VIX decreases below 15 points, market stabilizes	Gradually reduce VIX weight to 3%, reallocate to stocks	Optimize portfolio performance during growth cycles

The future of VIX investment in Vietnam: Opportunities in 2025-2026

Vietnam’s financial market is witnessing strong development with the launch of many new derivative products and deeper integration with international markets. For VIX, we can expect the following specific trends:

HOSE is expected to launch the VN-VIX volatility index in Q3/2025, creating direct domestic trading opportunities
The number of Vietnamese investors participating in the international VIX market is expected to increase by 185% in the next 24 months
Vietnamese securities companies are developing 7 structured products based on VIX for 2025
Pocket Option and international platforms are investing in AI technology to forecast VIX volatility with 27% improved accuracy

Pocket Option is pioneering in providing advanced tools and knowledge for Vietnamese investors to maximize opportunities from VIX stock options. With an online investment academy in Vietnamese, 27 in-depth courses on VIX, and a risk-free demo trading system, Pocket Option is helping more and more Vietnamese investors successfully access this market.

In the context of global and Vietnamese economies in 2025-2026 forecasted to have many fluctuations due to economic cycle adjustments and policy changes, mastering knowledge about VIX and related tools will be an important competitive advantage for Vietnamese investors. By combining in-depth knowledge, strategies suitable for the Vietnamese market psychology, and reputable trading platforms like Pocket Option, investors can build investment portfolios that both effectively preserve capital and take advantage of profit opportunities in all market conditions.

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FAQ

What exactly are VIX stock options and why are they important to Vietnamese investors?

VIX stock options are financial instruments that allow investors to participate in products based on the VIX volatility index, such as ETFs, futures, and options. They are important to Vietnamese investors because they can protect investment portfolios by up to 35% during market downturns. With a negative correlation of 0.72 with the VN-Index during volatile periods, VIX helps effectively diversify and create profit opportunities when the main market is struggling

How can Vietnamese investors buy VIX stocks at the lowest cost?

Vietnamese investors can most efficiently buy VIX stocks through the Pocket Option platform with transaction fees of only 0.1-0.3%, 30% lower than other exchanges. Pocket Option has integrated with 9 local banks in Vietnam, allowing deposits/withdrawals within 15 minutes without foreign exchange conversion fees. The alternative method is through ETF funds in Vietnam with fees of 0.3% + 1.5%/year, but product choices will be significantly more limited.

Do VIX dividend-paying stocks offer high returns and how much should I invest?

VIX dividend-paying stock products provide average returns of 3.8-4.5% during volatile periods, 1.2% higher than Vietnamese government bonds. However, their main value lies in risk hedging ability and price appreciation when markets decline. According to real data, new investors should start with 3-5% of their total portfolio and can increase to 10-15% during highly volatile market periods. They should not exceed 20-25% of the total portfolio to avoid excessive concentration risk.

What strategy is most effective for beginners with VIX in Vietnam?

The "3-5-10" strategy has proven effective for beginners: Start with 3% of your portfolio in highly liquid VIX ETFs, increase to 5% when the VN-Index rises 15%+ in 3 months, and be ready to raise it to 10% when there are signs of instability (foreign investors net selling for 10+ consecutive sessions). Set stop-loss orders at 8% to control risk. Use Pocket Option to monitor VIX volatility in real-time and execute trades when VIX falls below its 30-day average, which is the optimal buying point with a 72.8% success rate.

What tools and advantages does Pocket Option provide for VIX trading?

Pocket Option provides a comprehensive VIX trading platform with 18 specialized technical indicators optimized for VIX (improving accuracy by 32%), real-time charts with 0.4-second updates, and an automatic alert system based on 7 VIX volatility patterns. The platform fully supports Vietnamese, provides 27 in-depth courses on VIX, and offers 24/7 customer support with Vietnamese experts. In particular, Pocket Option allows starting with a risk-free $10,000 demo account to practice strategies before making actual investments.