Option Trading Education

If you have never traded options before, there are two things you need to know:

1. Put options increase in value when the price of the underlying security goes down.
2. Call options increase in value when the price of the underlying security goes up.

What is the 
"VIX"

The VIX is known as the "fear index" since it increases in value when portfolio managers buy a lot of put options on the SPDR S&P 500 ETF Trust (SPY) to guard against a big drop in the stock market.

Dan