Aug 13, 2018
Volatility Review with very special guest co-host Russell
Rhoads, Head of Derivatives Research at the Tabb Group.
- Volatility and selloffs return briefly during earning
- VIX Cash - 11.83, down slightly from last week.
- VVIX - 88, unchanged from last week.
- VIX Options - ADV: 440k, VIX call/put: 3/1, Total 7.95m (5.96m
Calls, 1.99m Puts)
- VXX - 28.5, 2 points lower than last week.
Volatility options question of the week: VXX has finally broken
through the 30 handle. Many of you are fascinated with the ongoing
saga of the VXX Jan 10 Puts. OI is over 200k and thousands continue
to trade for $.01. Our question: Would you trade these puts?
- 57% - Yes: Buy for $.01
- 14% - Yes: Sell for $.01
- 23% - No. It's Just Gambling
- 6% - I have enough VXX Puts
Volatility Voicemail: Listeners have their say
- Question from VolBug - When it's all said and done, is the
bottom line that all inverse VIX products, whether short term or
mid-term, can be subject to an acceleration event like SVXY given a
high enough spike in the VIX? Thanks!
- Question from LL09 - Are you guys still trading these things?
Saw 1k go up yesterday. Was that meatball?
- Comment from LVAC2 - Etrade wants to charge me $159.95 to buy
200 of those VXX Jan 10 puts. That's highway robbery!
Crystal Ball: Getting our prognosticating on
- Mark L. -11.45
- Mark S. -12.76
- Guest - 12.05
- Mark L. -12.25
- Andrew -11.01
- Russell - 13.05