What is VXX & How Does it Work? UPDATE May 2nd, 2019: After the maturity of VXX, Barclays launched VXXB, which is essentially the same exact product that the original VXX was. In May 2019, Barclays renamed the new VXXB back to the original ticker symbol, VXX. The History: On January 29th, 2009, Barclays launched VXX, an exchange-traded note […]
Why Does Implied Volatility Change? (Options Trading Tutorial)
Why Does Implied Volatility Change? (Options Trading Tutorial) Implied volatility is a crucial options trading concept for beginners to understand, but it can be a daunting thing to learn because it seems very complex. While the math behind calculating implied volatility is complex, all we need to know as options traders is this: ➜ Implied volatility quantifies option prices […]
IV Rank vs. IV Percentile: Which is Better?
IV Rank vs. IV Percentile: Which is Better? All stocks in the market have unique personalities in terms of implied volatility (their option prices). For example, one stock might have an implied volatility of 30%, while another has an implied volatility of 50%. Even more, the 30% IV stock might usually trade with 20% IV, […]
Trading VIX Options (3 Things You Need to Know)
Trading VIX Options: Things You Need to Know The Cboe VIX Index is an index that measures the prices of 30-day option prices (implied volatility) on the S&P 500 Index (SPX). However, the VIX is just an index that measures SPX option prices and does not have any shares that can be traded.Fortunately, the VIX […]
VIX Term Structure – The Ultimate Guide
The VIX Term Structure (VIX Futures Curve) Explained The VIX term structure (sometimes called the “VIX futures curve”) is the relationship between the prices of short-term and long-term VIX futures contracts. The shape of the VIX futures prices when plotted (upwards, downwards, or flat) indicates whether the market is expecting more or less market volatility in […]
Trading VIX Futures | Volatility Product Guide
Trading VIX Futures: What You Need to Know The Cboe VIX Index measures prices of 30-day option prices (implied volatility) on the S&P 500 Index. Since option prices are an indicator of fear or complacency in the marketplace, the VIX is sometimes viewed as a “fear index” that gauges the level of uncertainty in market […]
