The one constant in the stock markets is change. Said differently, volatility is a constant companion to investors, which is why the CBOE Volatility Index (VIX) is such a widely tracked market index. Ever since this measurement of investor sentiment regarding future volatility was introduced (with futures and options following later), many investors have wondered about the best ways to trade the VIX Index.
Realizing the generally negative correlation between volatility and stock market performance, many investors have looked to use volatility instruments to hedge their portfolios. In this article, we’ll review four ways you can trade the VIX using …
