Mar 5, 2012
43: Are Weekly Options Ruining
Volatility Review: The VIX was gaining ground
again, but became mired in a holding pattern. What was the cause of
the influx of capital in TVIX? NASDAQ vol is still flat-lining.
Euro vol review.
Volatility Viewpoint: Sanjay Tolia of Bengal
Capital is the featured guest. A great conversation included
questions such as: Are high levels of correlation taking away from
single-stock option trading? Are high levels of correlation taking
away from running balanced volatility portfolios? Are VIX products
good or bad for retail investors? Are weekly options good or bad
for retail clients? Is their explosive growth good for the
Crystal Ball: Until people start hitting the bid
or lifting offers, VIX levels are going to stay in this range.
Expect a similar stall in NASDAQ. Don predicts that Euro vol
expiration settlement price next week will be lower than the 10.27
of Thursday night, and will settle in the mid-9s.