How to Trade Volatility in Taiwan?

    Before VIX was traded in the US financial market in 2004, VIX had been introduced to gauge the fear level of the market, called Fear Index, since 1986 at CBOE. Beyond the expectation of the price direction of investment target, VIX provide another perspective for investors to put the money it. No more guessing the direction of the target, people can invest their money on the level of volatility by trading VIX. However, there is no such kind of target can been traded in Taiwan financial market till now, people can only combine the option positions by buying or selling puts or calls to simulate the trades of volatilities.

    In this essay, concepts about trading volatility will be stated, and the method of forming the volatility trade by options will also be introduced. And, with the experience of authors, the strategies will be proposed to deal with the presidential election in Taiwan on 2016/1/16.

其他請參考連結 https://drive.google.com/file/d/0B58Z287ox-GcRldHWE9rb0U5Nmc/view?usp=sharing