Review: POPULAR VOLATILITY TRADING TOOL FOR OPTION & EQUITY TRADER
Rating: 5 out of 5
Date: 06 30, 2014
The Chicago Board Options Exchange (CBOE) Volatility Index (VIX) has been a popular trading tool for option & equity traders since it was introduced in 1993.  In 2006 the CBOE created Options on the VIX giving investors a direct and effective way to use volatility.  It now provides good opportunities for both hedging and speculation and is an excellent tool for portfolio diversification.  A popular saying amongst traders is “When the VIX is high it’s time to buy, When the VIX is low look out below.”  Traders now have a new instrument that isolates volatility, trades in a range, has high volatility of its own and cannot go to zero.  VIX Options are especially attractive to new traders who often find that their brokerage firm won’t allow them to sell options so they have access to volatility trading.  Brionnes' book is a good read for newbies and more experienced traders as well.  Thumbs up!