Stratagemtrade – ViPars Textbook only

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

Futures: This segment initiates futures comprehension, addressing common fears and misconceptions associated with trading them. A foundational grasp of futures is essential, as many volatility products are linked to future-based underlyings. Note: While futures can be the most effective tool at times, using them is not obligatory when trading ViPars™.

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

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

Position Management and Adjustment: This section elaborates on the adjustments and hedges applicable as volatility and the market evolve relative to each other. These strategic adjustments can significantly enhance any ViPar™ position.

This comprehensive package includes:

• The Volatility Pairs book (almost 400 pages) outlining the ViPar™ strategy and featuring a companion resource section covering contract specifications, along with handy “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. Additionally, it presents the ViPar covered call for low volatility conditions.
• 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 learning experience where presentation slides and the instructor are visible.
• Updated 2022 ViPar™ mini course (~13 hours of unedited instructions, handouts of class slides, bonus class recordings, and a write-up on a live class example).

This material, developed through several years of research and trial-and-error, is a unique resource that efficiently addresses the learning curve associated with trading volatility.

Full Package vs. the ViPar™ Mini Class

We hold a strong affinity for this strategy, particularly Scott, who considers it his favorite for various reasons, including its consistent wins, resilience against losses, and effectiveness during chaotic market conditions. The only drawback is its monthly implementation, typically when volatility significantly deviates from the mean/average.

The 3-day class in Maui, recorded and edited for conciseness, along with a comprehensive textbook, may be more than necessary for some unless intending to specialize in this strategy. At Stratagem, we prioritize cost-effectiveness, avoiding unnecessary upselling. The ViPars mini class is designed to address this concern.

We recommend the mini class as an excellent starting point, potentially eliminating the need for further advancement. It covers everything necessary to implement the strategy without serving as a teaser for additional products. While the textbook is recommended for those seeking advanced self-study, many students find success starting with the mini class. If they later wish to specialize in this powerful strategy, upgrading to the full package is always an option, with payment based on the incremental cost.

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