Advisor Option: Volatility

Options 101: Volatility

--What is Vega?

--Implied vs. realized volatility.

--What is the impact of low vs. high volatility environment on options trading?

--Correlation and becoming fully diversified by adding a volatility component to your portfolio.

--How do you get volatility exposure?

--What is an overlay strategy, and how do you construct one?

Misconceptions of the VIX:

--Quoting the VIX cash, which is the same as not VIX futures.

--The current pervasive attitude that the VIX is low.

--Believing it is a fantastic inverse correlation portfolio hedging tool, instead of buying a more direct portfolio hedge.

The Buzz: Potential new taxes that might be on the horizon for traders. Swan Wealth Advisors is in discussions with TD Ameritrade to start monthly options seminars.