Archive for the ‘Dean’s Option Videos’ Category

The VIX – What You Need to Know

Thursday, July 23rd, 2009

If you’re thinking about trading VIX options or futures, this 16-minute video will arm you with essential information about these widely-misunderstood and confusing contracts.

One correction: Thanks to Bill Luby at for pointing out that VIX futures were introduced before VIX options.

What is an Option Worth?

Wednesday, July 8th, 2009

Welcome to my options blog.  In the coming months I will be posting a number of videos explaining advanced options topics. Everything is free, so enjoy!

The first video is called “What is an Option Worth? The Many Faces of Volatility – and the VIX.” It explains option pricing in an easy-to-understand, intuitive manner – along with a complete discussion of volatility, especially implied volatility. From there I go into the VIX – what it is and what it truly represents – and then talk a little about the importance of implied volatility to option trading.

A few credits: Excel spreadsheets were constructed using the Hoadley option add-in functions.  The ARNA example at the end of the video is illustrated with screens from Think or Swim’s trading platform. And for pointing out the example to me, thanks to Chuck Eickelberg.

Please feel free to leave comments and questions – along with suggestions for future videos.