The newest asset class – volatility – has only had listed trading instruments since 2004, when VIX futures were listed on the CBOE Futures Exchange. The growth of derivatives and related products has been tremendous, and these products should be understood and utilized by most traders.

This seminar will cover the basics of VIX futures and options. While they are useful for speculation, their usage is better in spreads and as clues to broad stock market direction. Strategies will be described that take advantage of spreading opportunities that often arise.

In recent years, ETNs and ETFs on these products have proliferated. Descriptions of the basics of the most liquid of these will be given, along with advice on what to avoid and what to look for when trading this somewhat misunderstood aspect of the volatility space. Finally, it will be shown how to use these products to protect a portfolio of stocks.

• The CBOE has called VIX options the single most successful product ever listed.
• VIX derivatives, while extremely useful, are not necessarily straightforward.
• Learn the basics of VIX futures, options, and ETNs.
• Proper valuation of VIX options.
• Use VIX derivatives to protect a stock portfolio.
• Recognize when to use highly profitable spread strategies.