A look at Volatility (VIX) trading – Shaun Richards

Shaun Richards from Not A Yes Man Economics and Mike Ingram, Strategist at BGC Partners, discussed how the VIX index works and how traders could trade the volatility via options. Option traders keep an eye on Implied Volatility (IV) as rising IV adds to the option price and vice versa. Ingram and Richards dive deep into the options pricing model and discuss the concept of Implied Volatility and Historical Volatility. Currently, VIX is very low …to the point where experts say markets are complacent about near term risks. Though not a perfect indicator, option traders keep an eye on Implied Volatility (IV) as rising IV adds to the option price and vice versa. Moreover, VIX trading is simply putting a price to the volatility or uncertainty. Tip TV Finance is a daily finance show based in Belgravia, London. Tip TV Finance prides itself on being able to attract the very highest quality guests on the show to talk markets, economics, trading and investing, keeping our audience informed via insightful and actionable infotainment. The Tip TV Daily Finance Show covers all asset classes ranging from currencies (forex), equities, bonds, commodities, futures and options. Guests share their high conviction market opportunities, covering fundamental, technical, inter-market and quantitative analysis, with the aim of demystifying financial markets for viewers at home. See More At: www.tiptv.co.uk Twitter: @OfficialTipTV Facebook: https://www.facebook.com/officialtiptv

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