Get to know the VIX Index (aka "The Fear Index")

Explore the VIX Index, its role as a Fear Indicator, and its impact on Options trading in this comprehensive course.

  • Overview
  • Curriculum
  • Instructor
  • Review

Brief Summary

This course dives into the VIX Index, known as the 'Fear Index,' explaining how it measures market volatility and its effects on options trading. You'll explore its history, calculation methods, and why every options trader should keep an eye on it.

Key Points

  • The VIX is known as the 'Fear Index' and measures market volatility.
  • Understanding the relationship between VIX and S&P 500 Options is crucial for traders.
  • High levels of VIX often correlate with market panic, impacting stock prices.
  • The course examines historical spikes in VIX, especially during the 2008 financial crisis.
  • Other volatility indexes are introduced for a broader understanding of market dynamics.

Learning Outcomes

  • Comprehend why the VIX is referred to as the Fear Index.
  • Analyze VIX values and their correlation with S&P 500 options.
  • Evaluate the impact of high VIX levels on options pricing.
  • Understand the calculation methods behind the VIX.
  • Discuss historical VIX trends, particularly during market crises.

About This Course

The VIX Index is one of the most watched indexes in the markets. Learn how VIX measures "Fear" and its impact on Options


THE VIX ("FEAR") VOLATILITY  INDEX

The VIX is one of the  most watched indicators in the markets, even by professionals. We take a look  at what this index is, Understanding VIX method of computation, and how this Index is  interpreted on a day-to-day basis in practical terms. We look at overall market  correlations with the VIX since the index was created in the 1990's. The VIX  may be called a Volatility Index, but it acts more like a Fear index in the  markets. The key lies in understanding the relationship of the VIX index to the  S&P 500 Options.

A high or low level  of VIX impacts all S&P 500 Options as well as individual stocks. This  course looks at the example of the financial crisis of 2008 in detail when the  VIX levels spiked to unprecedented levels, and the impact it had on Options  prices. Every Options trader must watch the VIX index.

There are several  other Volatility indexes that track Volatility in the markets, and we cover the  important ones. It's hard to be a good investor if you don't follow the VIX.  Get the complete skinny here, this course is all action!!

What you will master

  • Why is the VIX called a Fear Index and why is it feared

  • Why is it the most watched index in the market

  • How  is this calculated

  • VIX values and the S&P (non)correlations in the early 1990's

  • VIX values and strong correlations in the late 1990's and since

  • What does a high value of VIX do to Option prices

  • Flashback - lets got to 2008 and see what high VIX levels can do

  • What is the relationship of the VIX to the VIX Futures

  • Why is the Options on the VIX not a good trading vehicle

  • Learn about the all-important VIX Index

  • What does certain levels of VIX mean

  • How is the VIX calculated

Instructor

Profile photo of Hari Swaminathan
Hari Swaminathan

Knowledge. Strategy. Execution.      Hari Swaminathan is the founder of OptionTiger, a cutting-edge Options mentoring company, and a full-circle educator in all areas of Financial Markets, Hari has developed several proprietary Intellectual Property "methods and approaches" around enhancing base case Options strategies (which favor the Market Makers) and turns that deficit into a massive EDGE on the trader's side.Hari has a...

Review
4.9 course rating
4K ratings
ui-avatar of Sam C
Sam C.
3.0
1 year ago

Course is too long and repetitive for the amount of content. 1:13 mins could've easily been covered in 20mins. felt like the same info was being repeated over and over just to give the course additional length.

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ui-avatar of Malik Sachin
Malik S.
5.0
1 year ago

good experience

I am interested in buying options for directional benefit , request you to advise one course that can be best

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ui-avatar of Wayne Brown
Wayne B.
5.0
1 year ago

Thanks for explaining what VIX is for and how to use it in option trading. Now I know what to look for and how to interpret VIX.

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ui-avatar of Mike Mercado
Mike M.
4.5
2 years ago

i was trading options before with little understanding the effects of vix (vega). i dont understand sentiments either. i dont know at what level is it low or high. now i am better understanding of it and how it is applied to type of options to trade depending on the vix level and for how long.

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ui-avatar of Erbium Dog
Erbium D.
5.0
2 years ago

Hari's explanations are always clear. I did not understand where the VIX came from and at least now I have an overview. Its a complicated subject.
Erbium

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ui-avatar of William Bravio Fernandes
William B. F.
5.0
2 years ago

learnt a lot of VIX impact on the options

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ui-avatar of Shanmukha
Shanmukha
1.0
2 years ago

Dont buy worth less course

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ui-avatar of Rupesh Das
Rupesh D.
5.0
3 years ago

Very clearly explained

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ui-avatar of Kevin Dueck
Kevin D.
5.0
3 years ago

Great applicable information.

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ui-avatar of Gregory Stephens
Gregory S.
5.0
3 years ago

This course has great information and is very helpful in developing strategies for trading the markets.

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