The Volatility Index 75 or more commonly called VIX options trading involves trading in the possible direction of the Volatility of shares in the S&P 500. Here, you predict whether the volatility of the underlying market will go up or down. Making money or losing it depends on whether your forecast was successful or not. This, in effect, serves as a call and put option. Your call option will see you make money if the VIX 75 value, at the time the trade expires, is above the value at entry. On the other hand, your put option will earn money if the value of the VIX at expiration is below the value at entry. This means that you are trading VIX Options the same way you would trade Currency Options. Or if you want to know more about Volatility Index 75 you could find more information at http://www.volatility75.net/strategy.html.
Follow these steps to trade Volatility Index options. First, look for brokers that offer VIX 75 options products such as CBOE and other brokers and consider the broker’s requirements. Approved for options trade if that is a requirement then register with a broker and deposit money then open the broker platform and select VIX options. Now you could start trading VIX Options by following proper money management – up and down options or call and put options are the basis of VIX Options trading. Then make a profit and withdraw, it’s that simple to make money trading Volatility Index Options.
If you expect an increase in the Volatility Index, you are buying that exchange-traded product. Conversely, if you expect a decline in the Volatility Index, you sell the exchange-traded product. However, other products move against the Volatility Index. If you expect the VIX to go up, you sell the product while a shadowing VIX decline means an increase in XIV. This includes Daily Inverted VIX Short-Term ETN (XIV), VIX Short Term ETF (SVXY), Short Term ETN 2x daily VIX (TVIX), ETN Medium Term Daily Inversion VIX (ZIV), Ultra VIX (UVXY) Short-Term ETF.