Jul 1, 2014
Volatility Views 117: Getting Your Face Ripped
Off By Vol
Volatility review: VIX cash had a range of
10.92 - 12.51 last week and has been on an uptrend for most of the
week. A look at VIX futures. A riddle from Don. VXST, RVX options.
Gold/metals vol: GVZ range of 12.64-13 last week. General downtrend
in gold vol after sharp spike the prior week
Volatility Voicemail: Listener questions and
- Question from One of the Men @optionideamen:
@Options VXX going to collapse into the 4th of July holiday. Buy
the 7/11 28p. Winner. U can thank me later.
- Question from Atlantan - I find the
topic of volatility ETPs and their net impact on volume in the
primary products very interesting. When products like VIX futures
were conceived the notion of retail trading those products was
inconceivable. To say nothing of retail oriented VIX products like
VXX and others. But it seems like these products are the big
drivers of volume these days. I might even go so far as to say they
are essential. Do you agree? Is it even possible in the current
environment to have a successful volatility future or option
without a related ETP providing a steady source of volume? Fun
show. I look forward to my weekly dose of all things volatility.
Any chance of some ag vol rundowns in future episodes?
- Question from Giuseppe Varino - To what
do you attribute the recent vol divergence between the VIX and the
Russell 2000? It seems as though Russell vol was unjustifiably
inflated. Or do you feel this premium was justified? Do you expect
this scenario to reemerge anytime soon or was this a relatively