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

4.75 (195 reviews)

Udemy

platform

English

language

Investing & Trading

What you will 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

Why take this course?

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 level 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

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

Reviews

Malik

December 23, 2023

good experience I am interested in buying options for directional benefit , request you to advise one course that can be best

Wayne

September 18, 2023

Thanks for explaining what VIX is for and how to use it in option trading. Now I know what to look for and how to interpret VIX.

Mike

May 24, 2023

i was trading options before with little understanding the effects of vix (vega). i dont understand sentiments either. i dont know at what level is it low or high. now i am better understanding of it and how it is applied to type of options to trade depending on the vix level and for how long.

Erbium

January 24, 2023

Hari's explanations are always clear. I did not understand where the VIX came from and at least now I have an overview. Its a complicated subject. Erbium

Gregory

November 30, 2021

This course has great information and is very helpful in developing strategies for trading the markets.

C-R.

July 6, 2021

Solid enlightenment on the VIX and correlating market symbols. Would be much better if updated to review and highlight most recent market events (within the last year 2020 to 2021). Very clear and precise presentation, nonetheless!

John

April 25, 2020

I always understood the VIX was a fear indicator, but I did not know or understand the origin and how it may be used to trade. This course is easy to understand and Hari is an excellent instructor. I'm really looking forward to the next sections.

Jennifer

May 5, 2017

This was a quick course with a lot of information. Overall, I'm glad I took this course. But, the wrap-up at the end was harder for me to follow and I think it's because I'm used to seeing examples from the instructor. So if he says when the VIX is over 25 you should sell deep OTM call spreads, he usually heads into the market to show what he means by that, as an example. I'm more of a visual learner and the page at the end with all the talking left me more confused. I'll have to watch this course again soon.

James

September 9, 2016

This course gave me a great understanding on this subject. I have always known that VIX had some kind of impact but never truly understood what that was, until I took this course.

Timothy

March 19, 2016

The curated walk through of the history of the VIX was insightful to a more fundamental understanding of the VIX. The portion on how the VIX is calculated really drove home what exactly the VIX index is, which leads to understanding the difference in “VIX Volatility” and the common statistical notion of volatility. The final lesson gives a succinct guide of how to apply options strategies at various VIX levels.

Sumit

March 13, 2016

VIX in general is a very complex topic. This made it simple not only from trading stand point but also conceptualizing the very topic in itself. This further gave good examples of what VIX could be affected by which helped further enhance readers understanding. The fact that it was not a very redundant course helped grasp key concepts which were useful rather than getting it very confusing.

Perry

February 5, 2015

This course has empoered me to know how I can benfit from "The Fear Index". Taught me how to use Credit/Debit spreads in relation to the VIX. Excellent course.

Pavel

February 4, 2015

This one helped me to better decide when and if to go with Credit spread or Debit spread. Take a look at OptionTiger.com course called Volatility Futures (/VX) which explains more of the VIX background.

Amit

February 2, 2015

Hari teaches us how VIX is important key component to option trading and which strategies you should employ in various VIX environments. The VIX is one way to gauge the amount of fear that is priced into the market. The great thing he explained is fundamentals behind VIX calculations, and how the correlations were built between market and VIX over years. Definitely helps you in understanding options trading better, without high VIX, I mean fear :-) Thanks Hari for such wonderful course!

Dave

July 6, 2013

If you are not clear on the "Fear Index," Hari does an excellent job in explaining what the VIX is about, as well as very good insight into how to position your trades when the index changes in value. Thanks Hari. Great job !!!

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