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The Option Alpha Podcast

68: VIX Index - How To Trade Volatility w/ Mark Sebastian from OptionPit.com

Oct 31, 2016
Former floor trader and hedge fund manager Mark Sebastian discusses trading volatility with the VIX index. Topics include the history of the VIX, pricing, VIX futures term structure, and simple strategies for trading volatility with higher success probabilities. Mark shares insights on back spread and hedging strategies, trading VIX options, and finding and trading companies around earnings.
50:23

Episode guests

Podcast summary created with Snipd AI

Quick takeaways

  • To select companies for earnings trades, focus on big, liquid names and look for high implied volatility setups.
  • Options provide more flexibility and require less active management compared to futures contracts.

Deep dives

Trading Strategies for Earnings

To select companies for earnings trades, focus on big, liquid names. Look for high implied volatility setups and adjust your strategy based on the level of implied volatility. As implied volatility increases, consider more aggressive strategies like short straddles or iron butterflies. Make sure to set your breakeven points outside the expected move to increase your chances of success.

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