They give the trader the right, but not the obligation, to trade the S&P 500 at a set price, before a set date of expiry. Downside risk can be adequately hedged by buying put options, the price of which depends on market volatility. Astute investors tend to buy options when the VIX is relatively low …
What is the VIX Volatility Index and How Do You Trade it? IG International Read More »