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
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475 students enrolled
Instructed by Hari Swaminathan Business / Finance
$60
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  • Lectures 8
  • Contents Video: 1 hour
  • Skill Level All Levels
  • Languages English
  • Includes Lifetime access
    30 day money back guarantee!
    Available on iOS and Android
    Certificate of Completion
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About This Course

Published 3/2013 English

Course 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

 

What are the requirements?

  • Basic stock markets and trading knowledge
  • Basic Options knowledge

What am I going to get from this course?

  • 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

What is the target audience?

  • All stock and Options traders
  • A must for any Options trader that trades major indices, ETFs and major stocks

What you get with this course?

Not for you? No problem.
30 day money back guarantee.

Forever yours.
Lifetime access.

Learn on the go.
Desktop, iOS and Android.

Get rewarded.
Certificate of completion.

Curriculum

Section 1: Introduction to the VIX Index
09:48
Introduction to the VIX Index and Course agenda. Why is it called the "Fear" index
13:10
Background of the VIX index, its correlationships to the S&P 500 Index from a historic and current perspective.
08:15
The design and calculation of the VIX index. Most importantly, what are the practical insights we can glean from its mathematical design.
Section 2: Practical analysis and implications of the VIX Index
10:08
See the VIX Index in action. A complete analysis of the VIX and the SPX Options during the 2008 crisis.
04:38
VIX Index and Options analysis - Discussion of ideal strategies.
09:14
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.
06:02
Discussion of some of the other VIX and Volatility products like the Nasdaq VIX (NVX) and the Russell 2000 VIX (RVX).
09:46
The concluding lecture with tips on the ideal strategies for different VIX environments.
VIX Quiz
5 questions

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Instructor Biography

Hari Swaminathan, Options and Financial markets expert, Trader and Investor

Knowledge. Strategy. Execution.

Hari Swaminathan is the founder of OptionTiger, a cutting-edge Options education and trading company based in Washington D.C.. Hari is an entrepreneur, everyday person and a self-taught Options expert for over 8 years. Hari has a Bachelors degree in Engineering from India, and MBA degrees from Columbia University in NYC and London Business School in the U.K

More than ever, its become important for everyday people to take control of their financial situation, and create additional income in a smart, risk-controlled manner. This is precisely my mission. Through knowledge, education and investment discipline. Options are powerful, but they have a learning curve. I've broken down all the complexities of Options in simple language that everyone can understand. The courseware uses real trade examples, always highlighting the pluses and minuses of every investment situation. Options provide the best way to take advantage of bull cycles, bear cycles and everything in between.

As someone that has self-learnt Options and through making mistakes, 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 and not lose money during this time. 

Having said that, if you can get past the first 12 months and acquire the expertise in a systematic manner, true financial independence awaits. Options are a mathematical and strategic game much like Chess, and no amount of technological advances can make this skill obsolete, because the fundamentals of Options are never going to change. 

You can trade Options from anywhere in the world, regardless of how old you are. You never have to worry about job security any more because you have a skill that can produce consistent wealth month after month. 

But you have some serious but exciting work to do before you can get there, and I'm here to help you in this journey. 

Watch my Free Course for Options Trading Beginners where I draw out a detailed roadmap of what this 12-month journey looks like, and the specific strategies you should master during each step of this learning process. 

Watch my Free Mini-courses or my YouTube channel , all of which have the highest quality of education material. 

And join me in my UDemy courses, where I share cutting-edge theoretical knowledge mixed with practical insights, strategy and impeccable execution through live trading examples. 

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.

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