Jul 9, 2018
Volatility Review: What trade war? The market rallies despite
the fact that the trade war has begun.
- VIX Cash - 13.75, 1.25-points lower than last week.
- VVIX - 103, almost unchanged from last week.
- VIX Options - ADV: 496K, VIX call/put: 2.7/1, Total 7.04m
(5.16m Calls, 1.88m Puts)
- A lot of VIX risk reversals hitting the tape today.
- VXX - 34.6,0.5-points lower than last week.
Volatility Voicemail: Flash poll
Which product or complex will experience the greatest
#Volatility going forward as a result of this trade war? Gold?
Crude Oil? Equities? Soybeans?
- Crude Oil
Options question of the week: Traders generally fade volatility
going into holidays (today notwithstanding). What's your favorite
vehicle when you want to wager on the dark side of volatility?
Short-term or Long-term - that's up to you.
- Short VIX Futures
- Long VIX Puts/Spread
- Long VXX Puts/Spread
- Short VIX Calls/Spreads
Listener questions and comments
- Question from LVist - Are you guys as surprised as me by VXX's
stubbornness? It refuses to break the 30 handle.
- Question from Casey - Is it me or is the vol space much more
boring after VIX/SVXY? Those were my two favs. Seems like there's
not much to take their place. What's the new short vol play?
Crystal Ball: Your prognostication headquarters
- Mark L. -12.55
- Mark S. -12.95
- Mark L. - 12.50
- Mark S. - 12.90
- Guest - 13.63