A guide to using the VIX to forecast and trade markets
Known as the fear index, the VIX provides a snapshot of
expectations about future stock market volatility and generally
moves inversely to the overall stock market. Trading VIX
Derivatives will show you how to use the Chicago Board Options
Exchange's S&P 500 volatility index to gauge fear and greed in
the market, use market volatility to your advantage, and hedge
stock portfolios. Engaging and informative, this book skillfully
explains the mechanics and strategies associated with trading VIX
options, futures, exchange traded notes, and options on exchange
traded notes.
Many market participants look at the VIX to help understand
market sentiment and predict turning points. With a slew of VIX
index trading products now available, traders can use a variety of
strategies to speculate outright on the direction of market
volatility, but they can also utilize these products in conjunction
with other instruments to create spread trades or hedge their
overall risk.
* Reviews how to use the VIX to forecast market turning points,
as well as reveals what it takes to implement trading strategies
using VIX options, futures, and ETNs
* Accessible to active individual traders, but sufficiently
sophisticated for professional traders
* Offers insights on how volatility-based strategies can be used
to provide diversification and enhance returns
Written by Russell Rhoads, a top instructor at the CBOE's
Options Institute, this book reflects on the wide range of uses
associated with the VIX and will interest anyone looking for
profitable new forecasting and trading techniques.
