May 9, 2016
Volatility Review: CBOE Livevol launches new data shop website: datashop.cboe.com. Non-farms and volatility: VIX can be deceiving as steep curve shows uncertainty. New VIX ETFs: VMAX/VMIN.
Russells Weekly Rundown:
- VIX Options: A light volume week overall: only one day even remotely exceeding ADV. Total 7.63m (5.58m Calls, 2.05m Puts)
- Earnings: Last week premium buyers won the day, this week premium sellers are in charge.
- ATVI - $34.60, ATM straddle $2.45, approx. 7%
Question of the Week Earnings Straddle Battle edition: Which will be more accurate TSLA $20 (8%) or BABA $4.70 (6%) ?
- 26% Tesla
- 31% Baba.
- 17% Sell both!
- 26% Buy both!
Volatility Voicemail: Listener questions and comments
- Question from Topcat - Are options less risky and volatile than contracts for difference?
- Comment from Mark Brant - Since VIX inception, VIX trends up from July to Oct. every year! Just like seasonality in grains!Sweet! @Options ATO: Selling 1k July 18 Puts to buy 2k July 29 Calls for even money! Really liking this play!
Crystal Ball: It's time for everyone's favorite game: Guess where VIX will close. Here are the predictions from when we last met:
- Russell - 18
- Andrew -15
- Mark L. - 15.5
And for this week:
- Russell - 15.5
- Mark S. - 13
- Mark L. - 14