Oct 31, 2013
Advisors Option: The World of VIX
Options 101: Using VIX options/futures and volatility products as hedges.
· What is the VIX? How is the VIX calculated?
· How are VIX options priced?
· How do the greeks work with VIX options?
· VIX is not a perfect hedge that offers pure inverse correlation to the S&P.
· Beware of the VIX settlement process and some of the other issues traders encounter during it. VIX settlement was 10/16 this month.
· There is an entire universe of VIX-related products out there including VXX, TVIX, etc.
Listener Mail: It’s like Dear Abby, but for options