Stratagemtrade – ViPars 2022 Mini Course

Explore Stratagem Trading’s exclusive method for trading volatility—the Volatility Pair (ViPar™): Taking a Bite Out of Volatility. Delve into the intricacies of volatility and discover intelligent approaches to trading it while maintaining a hedge through our two-volume book set and instructional videos. ViPar™ stands out as one of our preferred trading strategies, covering topics ranging from fundamental definitions to the systematic criteria for which our materials are renowned.

Futures: This segment presents futures, shedding light on common apprehensions and misconceptions surrounding their trade. A fundamental grasp of futures is essential since many volatility products are linked to a future-based underlying. Note: While futures can be effective tools at times, their use is not mandatory when engaging in ViPar™ trading.

Products: This section encompasses the primary volatility products and S&P 500 instruments employed in ViPar™ trades. Underestimate their influence at your peril. It’s not uncommon for a single volatility product (VXX) to surpass the daily trading volume of the most actively traded stock in America—Bank of America (BAC). Gain insight into the workings of the VIX and explore vital concepts such as skew, contango, backwardization, drag, reversion to the mean, realized vs. implied volatility, and term structure. Introduction to pairs trading is provided.

ViPar™ Criteria: Following an overview of our objectives with the ViPar™ trade, you’ll be guided step by step through the process of analyzing volatility and market conditions, constructing a standard VXX / SPX ViPar™. This involves selecting the time frame/expiration, choosing the VXX option side of the pair, opting for the SPX spread hedge, and balancing it against the VXX side.

Position Management and Adjustment: This section outlines the adjustments and hedges applicable as volatility and the market move relative to each other. Strategic adjustments are the key to enhancing any ViPar™ position.

The comprehensive package includes…

The Volatility Pairs book (close to 400 pages), detailing the ViPar™ strategy and featuring a companion resource section covering contract specifications and “cheat sheets” for volatility and S&P 500 products. It also addresses the 1-3-2 butterfly and synthetics, and their application to ViPar™ trades. For low volatility conditions, the ViPar covered call is presented. The complete set of videos from the 3-day ViPar™ class (over 13 hours of edited video). These videos complement and expand on the material in the books, providing a professional, high-definition view of both presentation slides and the instructor. It’s akin to being present in the classroom, all at a reasonable investment. There’s a reason why volatility products trade more shares than the top six stocks on the NYSE combined. Updated 2022 ViPar™ mini course (~13 hours of unedited instructions, handout of class slides, bonus class recordings, write-up on a live class example). This material required several years of research and trial-and-error to create. Traders would be challenged to find a format more comprehensive and condensed than this package, offering information not readily available together in today’s market. It’s a reliable method to bypass the daunting learning curve associated with trading volatility.

Full Package vs. the ViPar™ Mini Class

We hold this strategy in high regard, and it is likely Scott’s favorite for numerous reasons. It boasts the most consistent wins, making it an excellent choice during times of chaos when uncertainty prevails. Its resilience against losses is notable. The only drawback we can think of is that it’s a strategy typically implemented once a month when volatility deviates significantly from the mean/average.

The 3-day class in Maui, recorded and edited for conciseness, accompanied by a comprehensive textbook covering every conceivable aspect of professional-level trading, may be excessive for some unless they plan to specialize in this trade as their primary strategy. Stratagem is a unique company in that we aim to prevent unnecessary expenditures. We seldom engage in sales promotions and prefer to attract customers through our approach. We treat customers like family and friends, as many of our students become friends with our staff. To address this, we created the ViPars mini class.

We recommend the mini class as an excellent starting point that may never require further advancement. The ViPars™ mini class covers everything necessary to implement the strategy and is not a teaser designed to sell other products. We do suggest the textbook if additional guidance is needed for advanced self-study on the strategy.

Many students commence their journey here, and if they achieve significant success with the strategy and wish to specialize in this powerful approach, they can always contact the office for an upgrade. The cost of upgrading to the full package will only cover the incremental difference.

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