StratagemTrade – ViPars: Volatility Pairs Trading Introduction

Author/Presenter: StratagemTrade
Presented at: Option Tribe – June 2018
Format: eBook / Presentation Notes / Educational Material
Focus: Volatility Arbitrage, Pairs Trading, Options Strategy
Skill Level: Intermediate to Advanced Traders

✅ Book Overview:

"ViPars: Volatility Pairs Trading Introduction" is a powerful and eye-opening educational guide based on StratagemTrade’s presentation at the Option Tribe in June 2018. The ViPars methodology—short for Volatility Pairs—represents a unique and sophisticated approach to options trading that blends the principles of pairs trading with volatility arbitrage.

Rather than simply buying or selling volatility in isolation, ViPars leverages the relationship between two correlated underlyings, trading volatility against each other to reduce directional risk and profit from relative mispricing. This presentation is a must-read for traders who are ready to move beyond single-leg options trades and into more advanced, data-driven strategies.

✅ What You’ll Learn:

• What is ViPars?
  A complete breakdown of the Volatility Pairs concept and why it offers a powerful alternative to traditional volatility trading.
• Market Neutrality, Redefined
  Learn how ViPars aims to neutralize market direction and volatility spikes, while exploiting divergence in implied volatility between two instruments.
• Choosing the Right Pairs
  Discover the selection criteria for underlyings—correlation, IV skew, earnings proximity, and more.
• Setup Mechanics
  Walkthrough of constructing the trade: using options chains, modeling spreads, defining entry/exit, and managing theta decay.
• Trade Examples
  Real-world examples and backtested illustrations showing the ViPars concept in action.
• Why ViPars Works
  Insights into the behavioral inefficiencies that this strategy capitalizes on, and why many traders overlook them.

✅ Who This Book Is For:

• Options traders seeking advanced volatility strategies
• Market-neutral traders looking to reduce exposure and enhance returns
• Quant-minded retail or institutional traders interested in relative value arbitrage
• Anyone interested in StratagemTrade’s proprietary strategy frameworks

✅ Bonus Highlights:

• Originally presented to the respected Option Tribe community
• Includes slides, charts, and annotated trade logic
• Bridges the gap between theory and practical application
• Ideal prelude to StratagemTrade’s full ViPars course and live trading modules

✅ Final Thoughts:

This introduction to ViPars Volatility Pairs Trading is not just an educational primer—it’s a strategic playbook for traders who want to step into the world of structured, low-risk, volatility-based trading. Whether you’re an experienced options trader or a curious strategist, this book will expand your thinking and sharpen your trading edge.