Show notes: http://optionalpha.com/show68
Naturally, if you\u2019ve started trading options for any reasonable amount of time you\u2019ll run across the VIX index. Or as it\u2019s commonly referred to, the \u201cFear\u201d Index. And while the concept of tracking and trading volatility with the VIX might sound intimidating at first, trust me, it\u2019s not all that complicated and just requires a little common sense.
In today\u2019s podcast, we\u2019ve brought on a very special guest, Mark Sebastian, a former floor trader, hedge fund manager and the guy behind OptionPit.com. What\u2019s great about Mark is that not only does he have a lot of experience as an options trader, but he\u2019s also got a lot of specialized knowledge when it comes to the VIX and volatility products like VXX, UVXY, and VXZ that I know you\u2019re going to love.\xa0
During the show, we\u2019ll talk about the history of the VIX, how the index is priced, how the VIX futures term structure accounts for mean reversion and some simple strategies you can use to trade volatility with a higher probability of success. So, don\u2019t be afraid to dig into this podcast this Halloween - Mark and I have some yummy volatility treats waiting for you (okay I just had to throw that in there given the release date).