Use the VIX to Invest/Trade Smarter

DataTrek co-founder Nick Colas shares his thoughts on how to use the CBOE Volatility Index, better known as the VIX. He’s been trading options and analyzing the VIX since the late 1990s. In fact, some of his best wins were in options while working for Steve Cohen at the old SAC Capital.

Nick breaks his discussion of the VIX into 3 parts:

1: What the VIX measures and a few key numbers to know

2: A brief review of how the VIX has traded and why

3: How we make money today with this information

We hope you find today’s video useful! Please hit the like and subscribe button if you enjoy it.

Threads: datatrek_colas_rabe

[lisaomay]

I came here after watching your most recent interview on the compound. I'm just a regular person, a nurse, trying to understand the markets better. You explain concepts better than any person I've seen over 3 years of watching finance shows on this and other formats. PLEASE do more of this...a "good explainer" is a truly rare commodity. Your audience will grow tremendously with this type of content...slowly then all at once. Please keep it coming!

[christopher-syqp]

Very rare to find a true pro giving away precious info, keep it coming .

[KJMCK]

The best summary of the Vix that I have ever heard.

[chrisdeantonio]

Really appreciate and enjoy the no frills, no hype, straightforward presentation of USEFUL information!

[uncommonsense]

Greatly appreciate this. I use the VIX all day on deck while trading the markets SPX Qs SPY and numerous high quality tickers.

[colorblindphotographer]

Great Job Nick! We used to work together at SAC, I was in Risk with Ken G.

[Mawesome]

Just received an email about this channel! I am really enjoying the reports that I am receiving and excited for the upcoming videos!

[DavidVann-pm]

your newsletter is the best source of macro market analysis I've found. i read every issue. many thanks!

[fundyourhustle]

First found you on TCAF, loved your episode there and your newsletters. Enjoy the videos! Any plans to do longer videos w/ topics from your news letters (e.g. video version of daily briefing like quick markets/data/disruption pieces?) Personally like video format better because its easier to consume during busy daily activities :) Thanks again to you and Jessica for putting out solid (Free!) content!

[lizlemon]

Just discovered you, excellent presentation and extremely understandable.

[RiftRaft]

I did some modeling of returns as an amateur by buying S&P at different levels on the vix. IRR was much higher when you raised the threshold on the vix required to buy S&P. This was done with constant inflow of cash as is the case with most investors. However total returns started to lag as you increase the threshold because you buy less often. Lesson: buy when vix >25 if you have cash but still DCA otherwise

[ConiferousCapital]

Hi Nick, so happy you have started posting some of your insights on YouTube! Do you have any thoughts on the VIX losing some predictive power due to the increase in shorter term options < 30-days? Thanks!

[CafeRider]

Great explanation. Just what I needed. Thank you!

[JG-hzkh]

You have a real gift of explaining ideas and concepts coherently. Did you ever think about becoming a professor ?

[johndiana]

Excellent explanation of the Vix! Thank you!

[Sheldon_]

Very informative been seeking some knowledge on this topic this video help me out a lot.👍

[MountainDog]

Great news letters and wonderful videos !

[LamNguyen-ezxf]

Aloha Nick… Great video! Question: recently, on 12/18/24, the VIX spiked to about 28. In that moment what did you look at and consider to decide if you thought that was the peak, or if the VIX would spike higher, maybe to a second standard deviation of 36 like on 8/5/24? Thank you in advance.

[marciandjohn]

What are your thoughts on the MOVE index as a predictor? Thank you.

[ILIRIAN-EMPIRE]

Hi Nick
Can you do a updated video
Thank you