"For those wanting to take the next step in learning or portfolio modeling, Trading VIX Derivatives will be a logical step in progression. For investors considering trading the VIX in any of many products available I recommend getting a copy of Trading VIX Derivatives with the great return on investment this book offers." (SeekingAlpha, April 2012)
When I purchased this book, I was under the impression that it would contain actual strategies for speculating the VIX. Nope!
It's simply a guide of what VIX derivatives are and how they can be used. If you want to learn actual strategies for predicting the VIX levels you're out of luck. Keep that in mind before you buy this.
useful, but difficult to understand. in a actual situation, I still can not trust for 100%. it is merely one of tools for the decision making process.
Mr. Rhoads does an excellent job in explaining the volatility indexes.
For every option trader understanding of the vol. curve is a must-know. Mr Rhoades explains it perfectly.
I particularly find very useful Chapters 10-15 where he explains the practical use of VIX derivatives in different volatility environments.
He provides a real example to each strategy, compares it to each other and explains its pros and cons.
I personally think the VIX is one of the most misconstrued trading vehicles out there. This book gives one an understanding of the VIX products, how they are different from normal stock, option, and futures trading, and various trading strategies to hedge and make directional trades.
I consider myself an intermediate trader with an understanding of options and futures, yet I highlighted plenty of things and marked many pages to refer back too. This book has payout diagrams and quote charts for theoretical trades, and it also takes into account the crash of 2008 in many of the trading scenarios. I took my time going over each trade and found all of them really helpful for a better understanding of the VIX.
Rhoads talks about VIX futures, options, ETF's, and ETN's on various products such as gold and oil, but the main focus in on the S&P 500 volatility index. Rhoads breaks up the reading by adding a few highlighted random facts about options and futures to ease the reading on a rather complicated topic.
I would defiantly recommend reading the book and give it significant value, for it has already made me a better trader and has provided me with greater clarity on trading volatility in all its forms.
I have experience both with the VIX index, as well as Mr. Rhoads, and I have to say that this book greatly helped me to develop my knowledge of VIX futures and options, as well as market volatility, in general. The book comes from a viewpoint of somebody who knows how to trade the products, as well as teach an amazingly eclectic range of students. In my opinion, this book is a must-have for any aspiring VIX trader, rookies and veterans alike.
I found the book quite accurate in the information it presents (on VIX, its derivatives, and their use for hedging and speculation) -- but a lot of that information can be gleaned for free on the CBOE site, so, to justify its cost, I think a book should offer "added value" via engaging, easy-to-follow, makes-you-want-to-keep-reading writing.
Alas, this book's writing style is about as dry as that found on the CBOE site, making it a hard slog to read and digest cover to cover even, though it's a short book. And no, it's not the subject matter that forces such a dry style: McMillan's writings on options and volatility are just as engaging and absorbing as I would wish, for example.
The single-chapter intro to some options basics is too short and probably insufficient if you lack that info (there's just too much more you need to know about options!), while it's redundant if you already know that information.
Probably inevitable, but still a bit disappointing, is the very incomplete coverage of VIX-centric ETFs and ETNs -- no doubt because the field keeps evolving very fast. For example, while the book does mention ("cover" would be an overbid) thinly-traded, rather-flat inverse-VIX ETN VXX, if does not have a word about fast-moving, highly liquid XIV (almost 10 times larger in market cap and dollar trading volume). I guess an ETN that started trading in November 2010 could not be covered in a book published in August 2011...?
So, nothing deeply nor terribly about the book, but -- I think it just doesn't really pull its weight. I'd suggest starting with cboe.com, and [...] for a list of VIX-centric ETF to use as a start for your own research on how each of them is structured and performs.
I am mostly an energy trader, but have always kept the VIX quote up on my screen to use as a 'pseudo' market indicator. It is great to now have more insight into exactly what the VIX index is measuring. Also, learning about the VIX futures and how the relative price of VIX futures to the index gives more insight into what the outlook is for the over all stock market. On a final thought, I was thrilled to learn about the volatility index that relates directly to the price of Oil and have plans to incorporate this into my daily trading plan. All in all a great resource for those that want to use volatility as a market indicator.
With the market as volatile as it is today, I have been looking for a guide to use to trade VIX options and this is the perfect one. I look forward to using it to my advantage to help forecast future turning points.
Product Details :
Hardcover: 288 pages
Publisher: Wiley; 1 edition (August 9, 2011)
Language: English
ISBN-10: 0470933089
ISBN-13: 978-0470933084
Product Dimensions: 6.4 x 1 x 9.4 inches
More Details about Trading VIX Derivatives: Trading and Hedging Strategies Using VIX Futures, Options, and Exchange Traded Notes 1st edition
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