Jun 16, 2014
Volatility Views 115: VIX Says Poo to You
Volatility Review: VIX cash broke the 11-handle last week while we were recording, but it has since rebounded over concerns in Iraq. VIX futures started to see some backwardation creeping into the curve last week. Is that still the case this week? The death of volatility forces traders to get creative. The Economist asks "Is this the calm before the storm? Bank of America's market risk index falls to lowest level since 2000.
Iraq concerns spike crude price and volatility.
Volatility Voicemail: Question from Indigo Blue - What’s up with gold volatility? The contract is selling off like mad and yet volatility is at near record lows. I have been taking advantage of this opportunity to load up on some GLD premium, primarily verticals. I have also been think about ratio/repair trades in the gold futures options. Thought on this crazy gold volatility environment?
Question from VIXinator - Do you think this is a good environment for a cheap VIX vertical - maybe Jul 16/20 CS for $.35 or Sep 17/20 CS for $.60?
Question from Andy Braga - What do you think about Apple as a dispersion candidate going forward? Do you think the split will take the wind out of its sails from a volatility perspective, or is it perhaps more attractive here?
CRYSTAL BALL
An outlook for VIX, RVX, VIX ETPs and other volatility products.