ViPar: Taking a Bite Out of Volatility

Textbook ​(~400 pages)
3-day Class Recordings (24 hours class time, edited)
Other documents distributed in the class

ViPars 2022 Mini Course (~13 hours of instruction and bonus P.O.T. classes)


Discover Stratagem Trading’s proprietary approach to trading volatility—the Volatility Pair (ViPar): Taking a Bite Out of Volatility. In the two volume book set and class videos, you will learn the intricacies of volatility, and intelligent ways to trade it while being hedged. ViPar is definitely one of our favorite trading strategies.  Topics discussed range for basic definitions to the step-by-step criteria our materials are known for.

Futures: This section introduces futures including the common fears and misconceptions many people have about trading them. A basic understanding of futures is needed because many of the volatility products are tied to a future-based underlying. Note: Although futures can sometimes be the most effective tool, it is not necessary to use them when trading ViPars.

Products: This section covers the primary volatility products and S&P 500 instruments utilized in the ViPar trades. Don't underestimate their power. It is very common for just one volatility product (VXX) to trade 4 times as many shares in a day than the most heavily traded stock in America—Bank of America (BAC). You will learn how the VIX really works. Important concepts are explained including skew, contango, backwardization, drag, reversion to the mean, realized vs. implied volatility, and the term structure.  Pairs trading is introduced.

ViPar Criteria: After an overview of what we are trying to accomplish with the ViPar trade, you will be taken step-by-step through the process analyzing volatility and market conditions and constructing a standard VXX / SPX ViPar. This includes choosing the time frame/expiration, selecting the VXX option side of the pair, selecting the SPX spread hedge, and balancing it against the VXX side.

Position Management and Adjustment: This section details the adjustments and hedges that may be applied as volatility and the market move in relation to each other. It is these strategic adjustments that can super-charge any ViPar position.

ViPars Complete Package:
Textbook (~400 pages)
3-day Class Recordings
(24 hours class time, edited)
Other documents distributed in the class

2022 ViPars Mini Course (learn more here)

ViPars Textbook only

ViPars 2022 Mini Course only

This complete package includes...

  • ​The ​Volatility Pairs book (​close to 400 pages) detailing the ViPar strategy and includes a companion resource ​section​ that covers contract specifications and includes handy “cheat sheets” for the volatility and S&P 500 products.  It also covers the 1-3-2 butterfly and synthetics, and how they can be applied 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).  The videos complement and expand on the material in the books. These are professional, high definition videos where you can see both the presentation slides and the instructor teaching the class.  It’s just like you are there in the class room, and all for a very reasonable investment. There is a reason why the volatility products trade more shares than the top six stocks on the NYSE combined.
  • ​Updated 2022 ViPar mini course (~13 hours of instructions, handout of class slides, bonus class recordings, write up on a live class example).

This material took several years of research and trial-and-error to create. Any trader will be hard-pressed to find a format more comprehensive and compressed than this package, packed with information that is not readily available together in today's market. This is a sure way to short circuit that dreaded learning curve in trading volatility.