Oct 26, 2011
Volatility Views 27:
Stealing the Mean
Volatility Review: A bit of a roller coaster ride with the
S&P 500 and VIX -- A general rally in the broad market and a
resulting sell-off in the VIX going into this weekend. Don gives a
review of the ever-unfolding and crazy world of Euro vol. Plus,
Mark Sebastian's week in review.
Volatility Viewpoint: A continuation of the discussion
about skew, kurtosis, etc. Why don't we remove the mean in our
volatility formula and why doing it this way is a better hedge for
Volatility Trading for
Hi Guys: I imagine I am one of the many retail options traders who
regularly tune into your program, even though much of it is way
over my head. I've heard you guys discuss delta neutral trading in
the past. My question is whether you think this is an appropriate
strategy for retail options traders to adopt. Is it viable to trade
delta neutral with a regular online brokerage account these days?
Also, I know Mark Longo has said on previous programs that retail
tends to be directionally oriented and professionals trade vol. I'm
sure that's the case for a reason. Why do you think so many retail
traders fall into the directional vs. vol camp? Thanks for the
show. I'm learning something new every week -Facebook question from
Dabney K, Ontario, Canada.
Don's hinted at new vol contracts coming soon on equity indices.
Will these utilize the same formula as the euro or will there be
slight tweaks for the different underlyings? - Twitter question
Crystal Ball: Mark Sebastian weighs in on the upcoming
week. Also, an outlook of Euro vol for the remainder of