Mar 5, 2018
Volatility Review: A look back on the week from a volatility
Volatility Voicemail: Options question of the week
There's much debate about SVXY these days. Will it survive 2018?
Is it poised for serious upside? We'll table those questions for
now and instead ask all of you out there slinging SVXY. What is
your weapon of choice?
- 63% - Naked Long SVXY
- 20% - Long SVXY Calls/Spreads
- 10% - Long SVXY Puts/Spreads
- 8% - Long SVXY w/ Put Hedge
Listener questions and comments:
- Comment from Boris Ilyevsky - Maybe their FCM partners didn't
give them a choice. SVXY UVXY
- Question from J3dingle - Hi Mark, Given that both RexxShares
and ProShares have re-jiggered their Volatility ETPs, what are the
odds that VXX does too? Thanks, Joseph
- Question from Tills - Any chance the recent changeup with SVXY
is just to appease regulators. Maybe it will switch back later in
- Comment from Volatility Analytics - SPX 37% of days this year
have had a 1% change in SPX. Last year we had 8 total days.
- Comment from Ragin1234 - (RE: SVXY) XIV SVXY uneducated
customers are to blame for not doing their due diligence.
- Comment from LLLC1 - I think the world just woke up to a new
risk for vol products - "issuer panic risk". We all knew it was in
the prospectus but now we've seen it materialize. I wonder how this
will affect risk premiums in these products going forward.
- Comment from John Schryber - Those stocks got sold to cover the
inverse leveraged trade. It's all connected. Passive funds
Crystal Ball: Wild and reckless prognostication
- Mark L. - 16.75
- Bill - 14
- Mark S - 15
- Mark L. - 17.75
- Mark S. - 28