ABOUT THIS COURSE

THE VIX (“FEAR”) VOLATILITY INDEX

The VIX is one of the most watched indicators in the markets, even by professionals. We take a look at what this index is, Understanding VIX method of computation, and how this Index is interpreted on a day-to-day basis in practical terms. We look at overall market correlations with the VIX since the index was created in the 1990’s. The VIX may be called a Volatility Index, but it acts more like a Fear index in the markets. The key lies in understanding the relationship of the VIX index to the S&P 500 Options.

A high or low levels of VIX impacts all S&P 500 Options as well as individual stocks. This course looks at the example of the financial crisis of 2008 in detail when the VIX levels spiked to unprecedented levels, and the impact it had on Options prices. Every Options trader must watch the VIX index.

There are several other Volatility indexes that track Volatility in the markets, and we cover the important ones. It’s hard to be a good investor if you don’t follow the VIX. Get the complete skinny here, this course is all action!!

What you will master

Why is the VIX called a Fear Index and why is it feared
Why is it the most watched index in the market
How  is this calculated
VIX values and the S&P (non)correlations in the early 1990’s
VIX values and strong correlations in the late 1990’s and since
What does a high value of VIX do to Option prices
Flashback – lets got to 2008 and see what high VIX levels can do
What is the relationship of the VIX to the VIX Futures
Why is the Options on the VIX not a good trading vehicle

Category:Business
Tags:vix vixindex fearindex spx sp500index volatility impliedvolatility highvix lowvix
WHAT’S IN THE COURSE?

Over 8 lectures and 1 hour of content!
Learn about the all-important VIX Index
What does certain levels of VIX mean
How is the VIX calculated
What is the relationship between the VIX index and the SPX Index
How does the VIX measure “fear” in the markets
What does high VIX levels do to Option prices (see what happened in the 2008 crisis)
What strategies are ideal in a low or medium VIX environment
What strategies are ideal in a high VIX environment
What to watch out for in a high VIX environment

COURSE REQUIREMENTS:

Basic stock markets and trading knowledge
Basic Options knowledge

WHO SHOULD ATTEND?

All stock and Options traders
A must for any Options trader that trades major indices, ETFs and major stocks

CURRICULUM:

Section 1 – Introduction to the VIX Index

Lecture 1: Introduction
09:48
Lecture 2: History of the VIX Index
13:10
Lecture 3: Calculation of the VIX Index
08:15

Section 2 – Practical analysis and implications of the VIX Index

Lecture 4: Relationship of the VIX Index to the S&P 500 Options
10:08
Lecture 5: Practical trading examples during a High VIX environment
04:38
Lecture 6: Analysis of the High VIX and Google (GOOG) Options
09:14
Lecture 7: Analysis of the Nasdaq VIX (NVX) and the Russell 2000 VIX (RVX)
06:02
Lecture 8: CONCLUSION: Ideal strategies for different VIX levels
09:46