The Current State of Option-Oriented Indicators

April 7, 2017

Lawrence McMillan

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You can’t trade $VIX (the CBOE’s Volatility Index) itself, but there are plenty of ways that you can use volatility derivatives (both futures and options) to speculate and/or to help you predict market direction. In this seminar, we’ll look at those and illustrate some extremely important points:

  • Why the Big (Volatility) Short is a favorite hedge fund strategy.
  • Why do “TV analysts” keep saying “buy protection,” when all that does is lose money?
  • Why buying the Volatility ETFs (VXX, etc.) could be disastrous to your wealth.

In addition, option data (price and volume) can often be used to structure trading indicators or systems designed to predict the movements of the broad stock market. In this session, we will review the prominent ones (put-call ratios, volatility indices such as VIX, etc.) and bring you up to date on what these indicators are “saying” at the current time.