How To Profit From Stock Market Volatility
4.4 (49 ratings)
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How To Profit From Stock Market Volatility

A winning strategy every trader should know
4.4 (49 ratings)
Instead of using a simple lifetime average, Udemy calculates a course's star rating by considering a number of different factors such as the number of ratings, the age of ratings, and the likelihood of fraudulent ratings.
2,105 students enrolled
Created by Peter Titus
Last updated 4/2017
English
Price: Free
Includes:
  • 34 mins on-demand video
  • 3 Articles
  • Full lifetime access
  • Access on mobile and TV
  • Certificate of Completion
What Will I Learn?
  • Learn how to make money every single year consistently
  • Learn how to use ETF decay to your advantage
  • Use the VIX ETFs to put 2 extremely powerful fundamental factors in your favor
  • Take advantage of profitable situations when the stock market presents them
  • Learn how to tell the difference between short term pullbacks and recessions
  • Understand what the VIX is and what it measures
  • Learn effective risk management techniques
  • Understand examples of past volatility events and compare them to new situtations
  • Understand examples of past volatility events and compare them to new situations
View Curriculum
Requirements
  • Stock and options trading experience is useful, but not 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

The key to making money from volatility trading consistently is to simply take advantage of volatility when it's high. If we wait long enough and manage our risk properly, we should be able to make money on every single trade we make. If we bet on a stock, we never know what it's long term direction will be with any certainty. If we get the direction wrong, we'll lose money. Volatility trading is different. We always know the long term direction is down. It's impossible to get it wrong!


ETF Decay

If we try to play rising volatility, we'll be wrong some of the time. Worse yet, we'll be losing money to time decay if we use options. If we buy a volatility ETF, we'll lose money over time to ETF decay. Graph any volatility ETF over time and you'll see that they're all plagued by hideous decay, 30% per year or more. If we bet against volatility, on the other hand, we'll have this long term decay pattern working with us instead of against us. That gives us a trade setup with 2 
extremely powerful factors working in our favor: dropping volatility AND ETF decay.

Trading Strategies

Finally, before you place your volatility trade, it's important to know if you're facing a recession, or just a short term pullback in a bull market. A short term pullback is usually over in a few weeks. If a recession unfolds, you'll want to wait for higher VIX levels before placing your trade and expect to be in the trade much longer. How much longer depends on the situation. Fortunately, you won't need a full market recovery for volatility to drop. Once the market settles down, your trade will become profitable. Throughout the course, I'll show you some of things to watch out for, and some of the techniques I use for analyzing volatility trades. We'll go over the difference between short term pull backs and recessions and I'll walk you through the volatility events from 2016. Finally, I'll show you how to set up your first trade and give you some methods for managing your risk. 

Who is the target audience?
  • This course is for investors or traders who want to add a new trading strategy to their arsenal
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Curriculum For This Course
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How to trade volatility
11 Lectures 35:32
Introduction
02:33

Disclaimer
01:25

Short selling and the cost to borrow
03:10

Options basics
05:38

The VIX and Volatility
02:07

Trading volatility events
09:36

Setting up your first trade
05:44

How to start making money right away
04:08

The Big Volatility Short
00:15

A Perfect Strategy For Options Income
00:36

Create Your Own Automated Stock Trading Robot In Excel
00:19

Check your volatility trading knowledge!

Volatility Quiz
6 questions
About the Instructor
Peter Titus
4.3 Average rating
142 Reviews
2,688 Students
3 Courses
Trader, Technologist, and Entrepreneur

Peter Titus graduated from the University of Wisconsin- Madison with an engineering degree in 2003. He has been actively trading stocks and options since 2006 and has been building automated trading systems in Excel using Visual Basic for Applications (VBA) since 2009. He specializes in day trading stocks and ETFs.