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Trading VIX Derivatives: Trading and Hedging Strategies Using VIX Futures, Options, and Exchange Traded Notes
ISBN: 0470933089     Date Published: 2011-08-09     Author(s): Russell Rhoads
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Hardcover
Wiley
288 Pages
 
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06/20/2013 01:32:06
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Editorial Review - Book Description:
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.

  • Reviews 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
  • Accessible to active individual traders, but sufficiently sophisticated for professional traders
  • Offers insights on how volatility-based strategies can be used to provide diversification and enhance returns

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.

 
Customer Review:
Total Reviews: (8)
  (5)      (1)      (1)      (1)      (0)
(3) Shared
 
35 of 38 People found the following review helpful.

accurate, but dry and not comprehensive, August 28, 2011 ByAlex Martelli "Alex" (Palo Alto, CA) - See all my reviews This review is from: Trading VIX Derivatives: Trading and Hedging Strategies Using VIX Futures, Options, and Exchange Traded Notes (Wiley Trading) (Hardcover) I found the book quite accurate in the information it presents (on VIX, its derivatives, and their use for hedging and speculation) -- but a lot of that information can be gleaned for free on the CBOE site, so, to justify its cost, I think a book should offer "added value" via engaging, easy-to-follow, makes-you-want-to-keep-reading writing. Alas, this book's writing style is about as dry as that found on the CBOE site, making it a hard slog to read and digest cover to cover even, though it's a short book. And no, it's not the subject matter that forces such a dry style: McMillan's writings on options and volatility are just as engaging and absorbing as I would wish, for example. The single-chapter intro to some options basics is too short and probably insufficient if you lack that info (there's just too much more you need to know about options!), while it's redundant if you already know that information. Probably inevitable, but still a bit...
 
2 of 2 People found the following review helpful.

A must read for every option trader, July 4, 2012 Bydejan durovic - See all my reviews This review is from: Trading VIX Derivatives: Trading and Hedging Strategies Using VIX Futures, Options, and Exchange Traded Notes (Wiley Trading) (Hardcover) Mr. Rhoads does an excellent job in explaining the volatility indexes. For every option trader understanding of the vol. curve is a must-know. Mr Rhoades explains it perfectly. I particularly find very useful Chapters 10-15 where he explains the practical use of VIX derivatives in different volatility environments. He provides a real example to each strategy, compares it to each other and explains its pros and cons.
 
8 of 11 People found the following review helpful.

Nice To Learn How Traders Use The VIX, August 22, 2011 ByCLZoe (Chicago) - See all my reviews This review is from: Trading VIX Derivatives: Trading and Hedging Strategies Using VIX Futures, Options, and Exchange Traded Notes (Wiley Trading) (Hardcover) I am mostly an energy trader, but have always kept the VIX quote up on my screen to use as a 'pseudo' market indicator. It is great to now have more insight into exactly what the VIX index is measuring. Also, learning about the VIX futures and how the relative price of VIX futures to the index gives more insight into what the outlook is for the over all stock market. On a final thought, I was thrilled to learn about the volatility index that relates directly to the price of Oil and have plans to incorporate this into my daily trading plan. All in all a great resource for those that want to use volatility as a market indicator.
 
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