Average Reviews:
(More customer reviews)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.
Click Here to see more reviews about: Trading VIX Derivatives: Trading and Hedging Strategies Using VIX Futures, Options, and Exchange Traded Notes (Wiley Trading)
A guide to using the VIX to forecast and trade markets
Known as the fear index, the VIX provides a snapshot of expectations about future stock market volatility and generally moves inversely to the overall stock market. Trading VIX Derivatives will show you how to use the Chicago Board Options Exchange's S&P 500 volatility index to gauge fear and greed in the market, use market volatility to your advantage, and hedge stock portfolios. Engaging and informative, this book skillfully explains the mechanics and strategies associated with trading VIX options, futures, exchange traded notes, and options on exchange traded notes.
Many market participants look at the VIX to help understand market sentiment and predict turning points. With a slew of VIX index trading products now available, traders can use a variety of strategies to speculate outright on the direction of market volatility, but they can also utilize these products in conjunction with other instruments to create spread trades or hedge their overall risk.
Reviews how to use the VIX to forecast market turning points, as well as reveals what it takes to implement trading strategies using VIX options, futures, and ETNs
Accessible to active individual traders, but sufficiently sophisticated for professional traders
Offers insights on how volatility-based strategies can be used to provide diversification and enhance returns
Written by Russell Rhoads, a top instructor at the CBOE's Options Institute, this book reflects on the wide range of uses associated with the VIX and will interest anyone looking for profitable new forecasting and trading techniques.
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