Book description
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.
Table of contents
- Cover
- Series
- Title Page
- Copyright
- Dedication
- Preface
- Acknowledgments
- Chapter 1: Understanding Implied Volatility
- Chapter 2: About the VIX Index
- Chapter 3: VIX Futures
- Chapter 4: VIX Options
- Chapter 5: Weekly Options on CBOE Volatility Index Futures
- Chapter 6: Volatility-Related Exchange-Traded Notes
- Chapter 7: Alternate Equity Volatility and Strategy Indexes
- Chapter 8: Volatility Indexes on Alternative Assets
- Chapter 9: The VIX as a Stock Market Indicator
- Chapter 10: Hedging with VIX Derivatives
- Chapter 11: Speculating with VIX Derivatives
- Chapter 12: Calendar Spreads with VIX Futures
- Chapter 13: Calendar Spreads with VIX Options
- Chapter 14: Calendar Spreads with VIX Options and Futures
- Chapter 15: Vertical Spreads with VIX Options
- Chapter 16: Iron Condors and Butterflies with VIX Options
- About the Author
- Index
Product information
- Title: Trading VIX Derivatives: Trading and Hedging Strategies Using VIX Futures, Options, and Exchange-Traded Notes
- Author(s):
- Release date: August 2011
- Publisher(s): Wiley
- ISBN: 9780470933084
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