Get to know the VIX Index (aka "The Fear Index")
4.2 (66 ratings)
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Get to know the VIX Index (aka "The Fear Index")

The VIX Index is one of the most watched indexes in the markets. Learn how VIX measures "Fear" and its impact on Options
4.2 (66 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.
734 students enrolled
Created by Hari Swaminathan
Last updated 5/2017
English
Current price: $10 Original price: $60 Discount: 83% off
5 hours left at this price!
30-Day Money-Back Guarantee
Includes:
  • 1 hour on-demand video
  • Full lifetime access
  • Access on mobile and TV
  • Certificate of Completion
What Will I Learn?
  • Learn about the all-important VIX Index
  • What does certain levels of VIX mean
  • How is the VIX calculated
  • What is the relationship between the VIX index and the SPX Index
  • How does the VIX measure "fear" in the markets
  • What does high VIX levels do to Option prices (see what happened in the 2008 crisis)
  • What strategies are ideal in a low or medium VIX environment
  • What strategies are ideal in a high VIX environment
  • What to watch out for in a high VIX environment
View Curriculum
Requirements
  • Basic stock markets and trading knowledge
  • Basic Options knowledge
Description

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 levels 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

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  • 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

 

Who is the target audience?
  • All stock and Options traders
  • A must for any Options trader that trades major indices, ETFs and major stocks
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Curriculum For This Course
9 Lectures
01:12:32
+
Introduction to the VIX Index
4 Lectures 32:44

Introduction to the VIX Index and Course agenda. Why is it called the "Fear" index
Preview 09:48

Background of the VIX index, its correlationships to the S&P 500 Index from a historic and current perspective.
History of the VIX Index
13:10

The design and calculation of the VIX index. Most importantly, what are the practical insights we can glean from its mathematical design.
Calculation of the VIX Index
08:15
+
Practical analysis and implications of the VIX Index
5 Lectures 39:48
See the VIX Index in action. A complete analysis of the VIX and the SPX Options during the 2008 crisis.
Relationship of the VIX Index to the S&P 500 Options
10:08

VIX Index and Options analysis - Discussion of ideal strategies.
Practical trading examples during a High VIX environment
04:38

Analysis and impact of high VIX environments on individual stocks. In this lecture, we analyze the impact of a very high VIX on Google (GOOG) during the 2008 crisis.
Analysis of the High VIX and Google (GOOG) Options
09:14

Discussion of some of the other VIX and Volatility products like the Nasdaq VIX (NVX) and the Russell 2000 VIX (RVX).
Analysis of the Nasdaq VIX (NVX) and the Russell 2000 VIX (RVX)
06:02

The concluding lecture with tips on the ideal strategies for different VIX environments.
CONCLUSION: Ideal strategies for different VIX levels
09:46

VIX Quiz
5 questions
About the Instructor
Hari Swaminathan
4.4 Average rating
3,449 Reviews
28,818 Students
29 Courses
Options Mentor, Financial markets educator, Trader, Investor

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.. Like building a powerful Strategy "for all Option Strategies". 

Hari is self-taught in Options and actively trading these instruments for almost 10 years, mostly through trial and error. Trial and error in general, is an excellent method of learning, but applied in this context, trial and error CAN BE EXPENSIVE. My courseware focuses on this aspect mostly, so you can avoid losing money in the 1 to 2 years when you're learning. Yes, it does take that long, if not more. If the markets were indeed simple, you'd have everyone involved in it. Patience, Diligence, and Determination are what you need during this time.

Hari has a Bachelors degree in Engineering from India, and MBA's from Columbia University in NYC and London Business School in London UK. 

More than ever, its become important for normal people to take charge of their financial situation, and truly understand how financial markets, and the various asset classes, trading nuances really work. Investing in the financial markets is no longer a HANDS-OFF ACTIVITY. There's no point blaming financial advisors after the fact. Now, it's become crucial for everyone to do "their OWN homework", so you can decide for yourself whether something is good or risky. This is of course easier said than done, and that's exactly where we come in.

My mission is to educate everyday people on the deep, strategic underpinnings of the stock markets, and exploit that knowledge with the use of OPTIONS.  THERE IS NOTHING RANDOM about the markets. There are surprises all the time, but there's always a method behind every madness. And my goal is to get you to this point of understanding and awareness. That's when it starts to fit in. 

Knowledge, Education, Crafting Breakthrough strategy, Technical analysis, Following Smart Money, Risk management, Disciplined Money management, and near flawless Execution approaches are just a few of the crucial points emphasized in all the Courses. Video-based education courseware, Practical workshops, several elite proprietary Advanced systems, a 4-week Live Mentoring program are just a few things we offer. The goal is to provide a "full circle" education in the Markets, which is necessary before it starts "fitting in". 

Let's break down the Options game in a realistic manner. 

The Pluses

1. Options were invented out of thin air. And the people who invented them won Nobel Prizes for their invention (Fisher and Black). It is purely a "Mathematical" concept. 

2. This gives rise to very complex but interesting  analytical scenarios. It also gives us the ability to model Options with a set of tools like a car dashboard. This data is embedded in the mathematical formulas that underpin Options structure itself.

3. Because everything in Options is defined in mathematical terms, its also important to realize that OPTIONS will always be the same. Forever. Unless they discover serious flaws in the formulas and models used by these Nobel winners. 

4. Options and Chess have LARGE overlaps. You may agree that Chess is a game of "skill". It's a game of Strategy and depends upon how well you can plan (ahead) to attack, defend or take a neutral position. We also believe that Chess is strategy-focused and depends upon certain mathematical principles. Why or How do we know this - The reason we know its a game of skill is : Try to play 100 chess games with Kasparov or Anand. Normal people are almost guaranteed a loss in all 100 games. So it has to be a game of skill. And why do we know its underlying features are mathematics based. The fact that a computer like Deep Blue beat the GrandMaster Garry Kasparov in 1997.

5. Lastly, You MUST believe this completely -  Options, just like Chess, are a "skill set", and requires acquiring a deep set of analytical skills much more so than most skill sets in the world, and THEY can only be MASTERED over a period of time. Once you understand Options better, you'll realize how true this is. But, there is a very powerful light at the end of this tunnel. You build a skill set for life.  Age, Geographical location, Lifestyles, or Weather are no longer a barrier to creating consistent income streams, regardless of who you are, where you are, or how old you are. 

This is very POWERFUL stuff. 

Now let's look at the negatives. This is what most people will NOT tell you. Anyone that tells you Options are SIMPLE, and you can make extra ordinary income easily, is JUST NOT TRUE. I will tell you Options can be brutal if you simply apply speculative methodologies. And once you can develop a SYSTEMATIC approach to every situation (which is the Real Game), you'll be well on your way to consistent performance.


MINUSES


Options are easily the most fascinating financial instrument with several upside benefits, but also an equally powerful set of negatives. 

1. Options have a steep learning curve. Don't expect to become Kasparov in a couple of months. Market Makers who are 99% of the time, the counter party to all Options trades, are Options professionals, with 10 to 20 years of experience, in performing their "legal duty" of providing liquidity. 

2. If you're interested in Options, try NOT approach it with a mindset or requirement of making money. This is not only NOT going to happen, but its a recipe for disaster. It's like a student of Medicine wanting to practice their skills after 2 months of study. 

3) As someone that has self-learnt Options and through making mistakes from Trial and Error, I can tell you Options trading is not something you should take lightly. You will hear people talking of fantastic triple and quadruple digit returns. I'm here to be brutally honest with you - 

- Be very very careful in the first 12 months of Options trading. 

- This is when everyone is the most vulnerable to losing money. 

- Your main objective during this time is to focus on learning this craft 

Having said that, if you can get past the first 12 months and acquire the expertise in a Systematic manner with Systematic approaches to every situation, true financial independence awaits. But you have some serious but exciting work to do before you get there, and I'm here to help you in this journey. 

And join me in my UDemy courses, where I share cutting-edge theoretical knowledge mixed with practical insights, strategy and impeccable execution approaches, through live trading examples. How do we know it's all this (don't just go by my word). Check what 30,000 students have to say in 3100 Reviews, with almost 2800 of them being 5-Star or 4-Star

If you have any questions at any time, please feel free to message me on Udemy.

The order to follow on my Udemy courses

Comprehensive guide to Financial Markets, Investing and Trading

Options Trading Beginners Bundle (3-course Bundle)

Advanced Options Concepts

Options spreads and credit spreads Bundle

Technical analysis and Chart reading Bundle

After this, the order does not matter. You can take any of the courses as per your interest.