Nov 5, 2018
Volatility Review: A look back at the week from a volatility
perspective. Apple and Non-farms are on the radar today.
A rough month for equities:
- 9% Drop - the largest monthly Nasdaq drop since Nov 2008.
- 7% Drop - largest S&P monthly drop since Sept 2011.
Apple screwed the pooch:
- Apple tumbles 7% after earnings on light guidance.
- Market cap back below $1T
Earnings Highlights from Last Week:
- Tuesday - GE, Sony, BP, FB, eBay, Pfizer, Coca-Cola
- Wednesday - GM
- Thursday - Apple, Starbucks, Weight Watchers, Spotify, Cigna,
- Friday - ExxonMobil, Cboe, Alibaba, Chevron, Berkshire
- VIX Cash - 20.5, 6.5-points lower than last show.
- VVIX - 99, 21-handles lower than last show.
- VIX Options - ADV: 609k, VIX call/put: 2.4/1, Total 8.24m
(5.84m Calls, 2.40m Puts)
- VXX - 37.5, 3-points lower than last show
Volatility Voicemail: Options question of the week:
Volatility is all over the place these days. Some say it's too
cheap, others say it's too expensive. Either way they want to trade
it. What's your weapon of choice when trading the wacky world of
- VIX options/futures
- VXX options/ shares
- TVIX shares
- SPX / SPY options
Listener questions and comments:
- Question from Alan Jackson -You guys say to close or roll ahead
of VIX expiration to avoid the settlement flimflammery. So when
should I do it? The day before settlement? The last hour of the
day? A few days before? What's the ideal closing scenario?
- Question from Numrr - What's your preferred ratio of puts to
underlying when trading VXX. Obviously you have to overweight with
puts but how much? I like to keep 3 OTM puts on for every share of
VXX. That way I'm biased short but also have something in my back
pocket for weeks like this. What are your thoughts on that
Crystal Ball: Wild and reckless prognostication
- Mark L. - 18.15
- Mark S. - 17.25
- Guest - 18.50
- Mark L. - 18.35
- Mark S. - 16.50