How to trade the VIX

VIX, also called the "Fear Index", represents the 30-day expected volatility of the US Markets as reflected in the price of SPX Options. It is also an index that can be traded, although not as easily as other indices such as the SPX or the NDX. In this lesson we will learn how to trade VIX by using VIX Futures, VIX ETFs and ETNs and also VIX Options.

We will also learn the nuances of each one of these instruments, how contango and backwardation affect their pricing and how to select the best instrument to trade the VIX effectively and profitably.

0:00:45 Volatility, Implied Volatility and VIX
0:05:54 VIX: What it represents and how it's calculated
0:18:10 3 ways to trade the VIX
0:19:19 VIX Futures
0:28:57 VIX ETFs and ETNs
0:48:12 VIX Options
1:09:38 Summary

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[staristo]

WOW!!! 1 hr + VIX material!! Wish I could give +10k likes

[danielwinicki]

Excellent vid, this is actually very underrated

[eugeneperera]

Another incredibly detailed video...thanks so much!

[chromashift]

Amazing, so much clarity into a such a great channel.

[ScottyTrades]

Question, so when trading the vix options, is it best to trade the DTE that matches /VX? This was best video of VIX by far. You are very knowledgeable!!!!

[covercalls]

I am not good at determining how the VXX will trade. I trade by selling weekly puts and calls on VXX. Using the power of time decay of options to my advantage since Oct of 2021 I sell the options collect the weekly premiums and wait for the options to expire worthless. Of the 44 options contracts I sold 38 expired worthless. If assigned I sell calls, If called out I sell puts. Using technical indicators and Delta among others has proven profitable for me.

[warever]

Correct me if I'm wrong, but at 7:17 it should be 30-days, not 1-year.

Even in the video description you say "represents the 30-day expected volatility", which is true, but not 1-year.

Also, at 26:26 you say the VIX Futures settle to the spot VIX, but that's incorrect; they settle to the VRO price just like its Options.

[thjames]

Vix is the 30 day implied volatility thus you can't use it to estimate the market expectation or normal distribution over 1 year..

[gentlerhinoceros]

What happen to other videos like the greeks?

[richardsantomauro]

No new information here. No structure in this video. Not succinct. Just keeps repeating himself and talking in circles.