VIX Options and Futures: How to Trade Volatility for ProfitPeter Lusk
Find out how to invest in the CBOE Volatility Index today. This page details all the ways you can invest in CBOE, along with the asset's current price and historical data.
Pretty much all volatility index ETFs use the VIX futures market for their volatility exposure. Some buy near-term futures contracts; some hold a mixture of short-dated and deferred-month contracts. Regardless of which futures contracts an ETF holds, it must occasionally “roll” those futures po...
Historically speaking, the more negative the price action, the higher the volatility. This is because negative price action increases fear. You can see this reflected in the CBOE Volatility Index (VIX) in the chart below… You can also see it if you look at a weekly chart of the broader ...
How does fundamental analysis work? Fundamental analysis is a method investors and traders use to determine a stock's real value (aka intrinsic value) by examining a variety of “fundamental” factors. This philosophy can be broken down into two main categories, qualitative and quantitative, as ...
How Does Assignment Work? What Does “Write an Option” Mean? How do you Know if an Option Position will be Assigned? What Happens after an Option is Assigned? Short Put vs. Short Call Option Assignment Examples Option Assignment Summed up FAQ Supplemental ContentWhat...
Who Do They Borrow From? Hedge fundsuse a variety of strategies to generate profits forhigh-net-worth investors. These could include derivatives like options, futures and short selling, as well as using leverage, or borrowed funds from a third-party lender in order to buy more of an asset ...
is among the essential characteristics of the financial markets. Investors often use it to indicate the health and the risk/return potential of a particular instrument or a whole asset class. To do that, they focus on different market volatility indicators like Beta and VIX. This guide explores...
VIX is often discussed in terms of spot volatility, the ETFs or ETNs available do not represent the spot VIX. Instead, they are collections of futures on the VIX that only roughly approximate the performance of the
As a result, these funds work best for short-term strategies that utilize aggressive exit techniques, long-term strategies, and hedges, and in combination with VIX futures and protective options plays. VIX Analysis Volatility fund strategies require a two-step approach that examines VIX as well...