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

by Russell Rhoads

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. 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.

Genres: Finance

288 pages, Hardcover

First published July 11, 2011

Reviews

[Philski]

Excellent book on the volatility index VIX and different methods to trade it and derivative products.

[Sjors]

Thorough-going discussion of the VIX index, its futures, options, and related investment products. Some useful points were made. Would recommend for advanced investors - too bad the book hasn’t been updated.

[Mantas]

Quite goid introduction into market volatility concept and option trading. However some ideas could be explained in more understandable way.

[Dale Jennings]

So much has changed about VIX that it’s outdated now. But, I’d buy an updated version immediately.

Edit: I have just finished the updated VIX Trader’s Handbook.
My original read of this book was April 2020 right after the massive VIX spike in March 2020 and that’s covered in the updated VIX Trader’s Handbook.

Definitely pick up the updated VIX Trader’s Handbook.

[Tadas Talaikis]

It;'s way too long read that can be put in around 10 pages.

[Srirama]

Still reading - so far interesting