Jul 16, 2018
Volatility Review: Today's guest is David Lincoln, ex-CBOE
Market Maker and Host of The Short Vol Show on YouTube.
A look back at the week from a volatility perspective:
- What trade war? The market has rallied almost non-stop post
Trump trade war
- VIX Cash - 12.50, 1.25 point lower than last week.
- VVIX - 101, almost unchanged from last week.
- VIX Option - ADV: 496k, VIX call/put: 2.8/1, Total 7.89m (5.82m
Calls, 2.07m Puts)
- Risk reversals keep popping up.
- VXX - 31.6, 3 points lower than last week.
- VIX ETF love affair endures as volatility falls
Volatility Voicemail: Options question of the week, part
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.
- 27% - Short VIX Futures
- 17% - Long $VIX Puts/Spread
- 33% - Long $VXX Puts/Spread
- 23% - Short $VIX Calls/Spreads
Options question of the week, part two.
Trading options during earnings season can be challenging. Some
live for it while others avoid it. Do you hold options positions
through earnings announcements? If so, what is your approach? Or do
you prefer to trade just before/after the event? Or is it all too
- Yes, Short Premium
- Yes, Long Premium
- No, Too Risky
- I trade around the event
Listener questions and comments:
- Question from Vixland -Why would these puts gain value? $VXX
never crashes down. Please explain. Love the shows. KEEP IT
- Comment from Beachlot - With on the story from Bloomberg last
week. They should be embarrassed writing a story on a 70k vol
- Question from BT Burg - What is the best way to trade these
inverse VIX ETFs going forward? If I'm long XIV does it make sense
to always have some VIX calls in my back pocket just in case?
Doesn't that get expensive really quick? What about spy puts? Or
should I just have puts on the inverse ETF in case the
counterparties get cold feet?
Crystal Ball: Wild and reckless prognostication
- Mark L. -12.50
- Mark S. -12.90
- Guest -13.63
- Mark L. - 12.20
- Andrew - 12.25
- Guest - 11.99