Get to know the VIX Index (aka The Fear Index) by Hari Swaminathan Free Download – Includes Verified Content:
Description
THE VIX (“FEAR”) VOLATILITY INDEX
The VIX is among the most closely followed indicators in financial markets, respected even by professional traders. This course examines what the VIX actually measures, explains its calculation method, and explores how traders interpret the index in everyday market conditions. We also analyze how the VIX has historically correlated with the overall market since its inception in the 1990s. Although called a Volatility Index, the VIX essentially serves as a Fear Gauge in the markets. The critical aspect is understanding how the VIX relates to S&P 500 Options.
Both elevated and low VIX levels influence not just the entire S&P 500 Options market but also individual stock options. This course offers an in-depth review of the 2008 financial crisis when the VIX surged to record highs, profoundly affecting options pricing. Monitoring the VIX is essential for every options trader.
Additionally, the course covers several other key volatility indexes that track market fluctuations. If you want to be a savvy investor, keeping an eye on the VIX is indispensable. This course is packed with actionable insights to help you master it.
What you will master
-
Why the VIX is known as the Fear Index and why it commands such attention
-
Reasons why the VIX is the market’s most watched index
-
The calculation process behind the VIX
-
Early 1990s VIX readings and their lack of correlation with the S&P 500
-
Strong VIX-S&P correlations from the late 1990s onward
-
How high VIX levels impact options pricing
-
A detailed look back at the 2008 crisis and the effect of extreme VIX spikes
-
The connection between the VIX and VIX Futures
-
Why trading options on the VIX itself might not be advisable
Who is the target audience?
-
All stock and options traders
-
Especially crucial for options traders dealing with major indices, ETFs, and large-cap stocks
