The Big Volatility Short: The Best Trade On Wall Street!

Name: The Big Volatility Short: The Best Trade On Wall Street!
Rating: 4.1 (118 reviews)

Learn how volatility works in the stock market and master a strategy that gives you a near-zero risk setup!

Created byPeter Titus

Last updated 4/2021

English

English [Auto],

What you'll learn

All students can follow my trades in real time and get my exact entry and exit points for each trade for no extra cost, for the life of the course!
All students will get trade announcement so you'll never need to worry about missing a trade
All students will get my analysis of the fundamental and technical setup in every trade
How to make 30% per year and in some years much more!
Why this trade is nearly impossible to lose money on (when set up properly)
How to put 2 extremely powerful fundamental factors in your favor
The most important aspects of how the VIX works
The best times to enter and exit the trade
The secret to reducing risk to near-zero

Course content

1 section • 17 lectures • 1h 17m total length

Introduction: Putting a huge edge in your favor!3:02
Leverage a simple volatility pattern based on the VIX that historically precedes declines, and learn to trade volatility, assess cycles, minimize risk, and target 30 percent annual returns.
What You'll Learn in This Course2:30
Master volatility-driven trading by using VIX ETF strategies, understanding how VIX is calculated, and applying three short selling approaches with risk-aware leverage and market analysis.
Disclaimer1:25
Assess risk before trading stocks, options, or other securities; past performance is not a guarantee and this material is not suitable for investors nor legal or financial advice.
My Best Ideas0:14
Short Selling and the Cost to Borrow3:10
Learn how short selling works, from borrowing shares and selling them to covering for a profit, and compare volatility ETF borrow costs to avoid eroding profits.
The Volatility Index (VIX)4:00
Analyze the VIX, the fear index, as a measure of expected S&P 500 volatility, rising in crises and falling during calm, with options, futures, or VIX ETF as trading avenues.
ETF Components and Mechanics6:00
Explore how VIX futures exchange traded funds like VIXY and VSX provide volatility exposure, with borrowing costs, monthly rollovers, and short-term hedging considerations.
Impact of Contango and Backwardation4:17
Explore contango and backwardation in futures curves and how they converge to the spot price at expiration, with VIX futures reflecting volatility and hedging short positions.
Trading Strategies for Bull and Bear Markets11:04
Analyze how to trade volatility by using a baseline volatility, assess bull and bear market conditions, and hedge with short-volatility strategies amid seven-year cycles and moving averages.
Options basics5:38
Explore options basics through the insurance analogy, learning how option contracts that cover 100 shares hedge stock positions, and understand premiums, time decay, delta, and expiration.
Margin Considerations and Getting Maximum Leverage10:34
Assess margin implications and maximize leverage on a VSX trade by using puts instead of calls to cap risk, optimize risk-reward, and preserve buying power across a portfolio.
3 trading strategies to consider8:02
Explore three VSX trading strategies by account size: small short-sale with no options, medium hedged with options, and high-leverage option plays using puts to maximize gains while managing risk.
Detailed Gain and Loss Profiles5:11
Examine how gain and loss profiles unfold for a volatility short, including hedge protection and option premium effects. Understand expiration impact on profitability.
How to Hedge For Less6:04
Learn to hedge for less by choosing shorter expirations, using higher strike prices, and applying partial hedges (about 90%) to balance upfront cost with risk.
How to Execute the Trade: An Example4:39
Execute a short position in VXX on January 20, targeting around 30. Hedge with VIX index options (June expiration, 35 strike) to protect the trade.
Apply your knowledge
A Perfect Strategy For Options Income0:36
Summary and Conclusion1:12
Explore why a volatility short offers a low-risk, high-reward trade for short sellers, hedging against volatility spikes and anticipating declines.

Requirements

No prior trading experience is necessary
You will need a computer and internet connection
You will need a broker with a live or practice account that allows short selling and the ability to purchase options

Description

Volatility trades can be incredibly profitable if you know what you're doing. Consider the following pattern: high volatility always drops, given enough time. Think about this for a moment and realize that this pattern has worked every single time in the history of the stock market! I can't think of anything else that even comes close to that kind of perfect track record.

A winning strategy every trader should know

The core of this strategy involves making a protected bet against volatility when it's high. Why? Because high volatility always goes down, given enough time. That's what makes this such a powerful strategy. The ETFs that track volatility also have extremely steep decay profiles. Since we're betting against volatility, this gives us an additional edge. That gives us a strategy with 2 extremely powerful factors working in our favor.

Maximize Leverage and Safety

This course will take you from beginner to expert on volatility, the VIX, and the ETFs that track it. We'll also go over what to watch out for and some of the techniques I use for setting up volatility trades the right way. If we plan our trade setup properly, and manage our risk aggressively, we should be able to win every single trade we make. We also want to maximize both leverage and safety. I'll show you how.

Who this course is for:

Anyone interested in earning extra income from home
Anyone looking to make better returns on their stock portfolio
Anyone interesting in learning ways to reduce risk