{"product_id":"trading-vix-derivatives-isbn-9780470933084","title":"Trading VIX Derivatives","description":"\u003cb\u003eA guide to using the VIX to forecast and trade markets\u003c\/b\u003e  \u003cp\u003eKnown 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. \u003ci\u003eTrading VIX Derivatives\u003c\/i\u003e will show you how to use the Chicago Board Options Exchange's S\u0026amp;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.\u003c\/p\u003e \u003cp\u003eMany 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.\u003c\/p\u003e \u003cul\u003e \u003cli\u003eReviews 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\u003c\/li\u003e \u003cli\u003eAccessible to active individual traders, but sufficiently sophisticated for professional traders\u003c\/li\u003e \u003cli\u003eOffers insights on how volatility-based strategies can be used to provide diversification and enhance returns\u003c\/li\u003e \u003c\/ul\u003e \u003cp\u003eWritten 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.\u003c\/p\u003e \u003cp\u003ePreface xiii\u003c\/p\u003e \u003cp\u003eAcknowledgments xv\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 1 Understanding Implied Volatility 1\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eHistorical versus Forward-Looking Volatility 1\u003c\/p\u003e \u003cp\u003ePut-Call Parity 4\u003c\/p\u003e \u003cp\u003eEstimating Price Movement 6\u003c\/p\u003e \u003cp\u003eValuing Options: Pricing Calculators and Other Tools 6\u003c\/p\u003e \u003cp\u003eFluctuations Based on Supply and Demand 9\u003c\/p\u003e \u003cp\u003eThe Impact on Option Prices 13\u003c\/p\u003e \u003cp\u003eImplied Volatility and the VIX 14\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 2 About the VIX Index 15\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eHistory of the VIX 15\u003c\/p\u003e \u003cp\u003eCalculating the VIX 17\u003c\/p\u003e \u003cp\u003eThe VIX and Put-Call Parity 18\u003c\/p\u003e \u003cp\u003eThe VIX and Market Movement 22\u003c\/p\u003e \u003cp\u003eEquity Market Volatility Indexes 24\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 3 VIX Futures 31\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eSteady Growth of New Products 31\u003c\/p\u003e \u003cp\u003eContract Specifications 33\u003c\/p\u003e \u003cp\u003eMini-VIX Futures 42\u003c\/p\u003e \u003cp\u003ePricing Relationship between VIX Futures and the Index 42\u003c\/p\u003e \u003cp\u003eFutures’ Relationship to Each Other 46\u003c\/p\u003e \u003cp\u003eVIX Futures Data 47\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 4 VIX Options 49\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eContract Specifications 51\u003c\/p\u003e \u003cp\u003eRelationship to VIX Index 56\u003c\/p\u003e \u003cp\u003eRelationship to VIX Futures 57\u003c\/p\u003e \u003cp\u003eVIX Binary Options 58\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 5 Weekly Options on CBOE Volatility Index Futures 61\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eContract Specifications 62\u003c\/p\u003e \u003cp\u003eWeekly Options and Index Options 63\u003c\/p\u003e \u003cp\u003eWeekly Option Strategy 65\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 6 Volatility-Related Exchange-Traded Notes 69\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eWhat are Exchange-Traded Notes? 69\u003c\/p\u003e \u003cp\u003eiPath S\u0026amp;P 500 VIX Short-Term Futures ETN 70\u003c\/p\u003e \u003cp\u003eiPath S\u0026amp;P 500 VIX Mid-Term Futures ETN 73\u003c\/p\u003e \u003cp\u003eComparing the VXX and VXZ Performance 76\u003c\/p\u003e \u003cp\u003eBarclays ETN+ Inverse S\u0026amp;P 500 VIX Short-Term Futures ETN 80\u003c\/p\u003e \u003cp\u003eBarclays ETN+ S\u0026amp;P VEQTOR ETN 82\u003c\/p\u003e \u003cp\u003eS\u0026amp;P 500 VIX Futures Source ETF 82\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 7 Alternate Equity Volatility and Strategy Indexes 83\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eCBOE S\u0026amp;P 500 3-Month Volatility Index (VXV) 83\u003c\/p\u003e \u003cp\u003eVIX Premium Strategy Index (VPD) 88\u003c\/p\u003e \u003cp\u003eCapped VIX Premium Strategy Index (VPN) 90\u003c\/p\u003e \u003cp\u003eS\u0026amp;P 500 VARB-X Strategy Benchmark 93\u003c\/p\u003e \u003cp\u003eS\u0026amp;P 500 Implied Correlation Index 95\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 8 Volatility Indexes on Alternative Assets 99\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eCBOE Gold Volatility Index 100\u003c\/p\u003e \u003cp\u003eCBOE Crude Oil Volatility Index 102\u003c\/p\u003e \u003cp\u003eCBOE EuroCurrency Volatility Index 104\u003c\/p\u003e \u003cp\u003eCBOE\/NYMEX Crude Oil (WTI) Volatility Index 107\u003c\/p\u003e \u003cp\u003eCBOE\/COMEX Gold Volatility Index 107\u003c\/p\u003e \u003cp\u003eCBOE\/CBOT Grain Volatility Indexes 109\u003c\/p\u003e \u003cp\u003eFX Realized Volatility Indexes 109\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 9 The VIX as a Stock Market Indicator 113\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eThe Inverse Relationship between the VIX and the S\u0026amp;P 500 114\u003c\/p\u003e \u003cp\u003eVIX Index as an Indicator 115\u003c\/p\u003e \u003cp\u003eVIX Futures as an Indicator 118\u003c\/p\u003e \u003cp\u003eA Modified VIX Futures Contract 121\u003c\/p\u003e \u003cp\u003eCombining VIX Futures and the VIX Index 122\u003c\/p\u003e \u003cp\u003eVIX Index and Gold Price Indicator 124\u003c\/p\u003e \u003cp\u003eVIX Option Put-Call Ratio 127\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 10 Hedging with VIX Derivatives 133\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eHedging with VIX Options 133\u003c\/p\u003e \u003cp\u003eHedging with VIX Futures 143\u003c\/p\u003e \u003cp\u003eUniversity of Massachusetts Study 147\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 11 Speculating with VIX Derivatives 149\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eVIX Futures Trading 150\u003c\/p\u003e \u003cp\u003eVIX Option Trading 153\u003c\/p\u003e \u003cp\u003eVIX ETN Trading 161\u003c\/p\u003e \u003cp\u003eComparing VIX Trading Instruments 166\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 12 Calendar Spreads with VIX Futures 169\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eComparing VIX Futures Prices 170\u003c\/p\u003e \u003cp\u003eThe Mechanics of a Calendar Spread 175\u003c\/p\u003e \u003cp\u003ePatterns in the Data 178\u003c\/p\u003e \u003cp\u003eTrade Management 189\u003c\/p\u003e \u003cp\u003eOther Parameters 193\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 13 Calendar Spreads with VIX Options 195\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eVIX Option Pricing 195\u003c\/p\u003e \u003cp\u003eCalendar Spread with Put Options 196\u003c\/p\u003e \u003cp\u003eCalendar Spread with Call Options 205\u003c\/p\u003e \u003cp\u003eDiagonal Spread with Put Options 209\u003c\/p\u003e \u003cp\u003eDiagonal Spread with Call Options 212\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 14 Calendar Spreads with VIX Options and Futures 217\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eComparing Options and Futures 217\u003c\/p\u003e \u003cp\u003eCalendar Spread Examples 219\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 15 Vertical Spreads with VIX Options 229\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eVertical Spread Examples 229\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 16 Iron Condors and Butterflies with VIX Options 251\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eWhat is an Iron Condor? 251\u003c\/p\u003e \u003cp\u003eIron Condor with VIX Options 255\u003c\/p\u003e \u003cp\u003eWhat Is an Iron Butterfly? 257\u003c\/p\u003e \u003cp\u003eIron Butterfly with VIX Options 261\u003c\/p\u003e \u003cp\u003eAbout the Author 265\u003c\/p\u003e \u003cp\u003eIndex 267\u003c\/p\u003e \"For those wanting to take the next step in learning or portfolio modeling, Trading VIX Derivatives will be a logical step in progression. For investors considering trading the VIX in any of many products available I recommend getting a copy of \u003ci\u003eTrading VIX Derivatives\u003c\/i\u003e with the great return on investment this book offers.\" (\u003ci\u003eSeekingAlpha\u003c\/i\u003e, April 2012)  \u003cp\u003e\u003cb\u003eRUSSELL RHOADS, CFA,\u003c\/b\u003e is an instructor for the Options Institute at the Chicago Board Options Exchange. He teaches about ninety classes a year and conducts webinars on behalf of the CBOE and a variety of brokerage firms. Rhoads's twenty-year trading career has included positions at a variety of trading firms and hedge funds. His background includes trading and analysis, and he is the author of the Wiley titles \u003ci\u003eCandlestick Charting For Dummies\u003c\/i\u003e and \u003ci\u003eOption Spread Trading\u003c\/i\u003e. Rhoads graduated from the University of Memphis with an MS in finance and has a master's certificate in financial engineering from the Illinois Institute of Technology.   \u003c\/p\u003e\u003cp\u003e\u003cb\u003eTRADING VIX DERIVATIVES\u003c\/b\u003e \u003c\/p\u003e\u003cp\u003eWhile the Chicago Board Options Exchange (CBOE) Volatility Index, widely know by its ticker symbol VIX, is often referred to as the \"fear index,\" it is much more than an index of fear in the stock market. Nobody understands this better than author Russell Rhoads, a top instructor at the CBOE's Options Institute. Now, in \u003ci\u003eTrading VIX Derivatives,\u003c\/i\u003e he skillfully explores the ins and outs of this popular market indicator, or index, that is based on implied volatility. \u003c\/p\u003e\u003cp\u003eEngaging and informative, this reliable resource provides you with a solid understanding of implied volatility, the VIX index, methods of using the VIX for market analysis, and ways to directly trade volatility. \u003c\/p\u003e\u003cp\u003ePage by page, you'll become familiar with a number of volatility-related indexes and products currently available—from the S\u0026amp;P 500 Implied Correlation Index (VTY) and CBOE Crude Oil Volatility Index to VIX futures, options, and exchange-traded notes. There are unique features to many of the derivative contracts that are based on implied volatility, and they are touched on throughout the book. \u003c\/p\u003e\u003cp\u003eAlong the way, Rhoads takes the time to highlight the various uses of volatility-related indexes and products. Methods to speculate on the direction of the overall market, or just volatility, are skillfully addressed as well as how to apply volatility derivatives to hedge traditional portfolios. Rhoads rounds out his detailed discussion of trading VIX derivatives by offering you valuable insights on everything from calendar spreads with VIX options and futures to iron condors and butterflies with VIX options. \u003c\/p\u003e\u003cp\u003eVolatility as an asset class and trading tool continues to be a rapidly growing area in the markets. With this book as your guide, you'll quickly discover a wide range of uses associated with the VIX and learn how to implement profitable new forecasting and trading techniques into your everyday investing endeavors with it.\u003c\/p\u003e","brand":"Wiley","offers":[{"title":"Default Title","offer_id":47990402941157,"sku":"NP9780470933084","price":79.0,"currency_code":"USD","in_stock":false}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/1842\/7735\/files\/9780470933084.jpg?v=1761787687","url":"https:\/\/k12savings.com\/products\/trading-vix-derivatives-isbn-9780470933084","provider":"K12savings","version":"1.0","type":"link"}