Trading VIX Derivatives: Trading and Hedging Strategies Using VIX Futures, Options, and Exchange Traded Notes

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.

Keywords: Trading, Russell Rhoads, vix, trading vix derivatives, trading vix, vix derivatives, vix index, vix futurs, vix options, volatility smile, stock market volatility, stock market volatility index, trading stock market volatility, vix movements, fear index, measure of fear, measure of volatility, options, implied volatility, historical volatility, volatility index, volatility-based trading strategies, volatile markets, trading volatile markets, market sentiment, market volatility patterns, option market volatility, Chicago Board Options Exchange Volatility Index, CBOE Volatility Index