Options Insight: How to Trade the VIX

The video discusses the political risk in Europe, particularly focusing on the French election and its impact on options markets. It compares how the European and US markets are pricing this event, highlighting elevated volatility expectations in Europe. The discussion includes a strategy for the US market, drawing parallels with the Brexit referendum. The video concludes with a VIX trading strategy, suggesting selling VIX puts due to anticipated volatility from the French election.

What is the primary focus of the political risk discussed in the first section?

• The Brexit referendum

• The German election

• The French election

• The US presidential election

How are European markets reacting to the French election compared to US markets?

• European markets show elevated volatility expectations

• Neither market is reacting

• Both are reacting similarly

• US markets are more volatile

What financial instrument is used to speculate on future volatility?

• Stocks

• Mutual funds

• Bonds

• Futures contracts

What historical event is compared to the French election in terms of market impact?

• The Italian referendum

• The German election

• The Brexit referendum

• The US presidential election

What is the recommended trading strategy involving VIX options?

• Selling VIX puts

• Buying VIX calls

• Selling VIX futures

• Buying VIX futures