Feb 11, 2013
Volatility Views 80: The
Listeners Take Over
Volatility Review: NASDAQ realized vol hits 11.33,
a continued downtrend not only in NASDAQ, but also S&P vol. The
Russell is garnering premium over everything else.
Listener Mail: Our listeners
are keeping us busy with questions.
- Question from JoJo - I love the show! Have you thought about
bringing on a CTA?
- Question from Justin Deveroe - Can you walk me through a few
potential use-cases for a NASDAQ vol contract? I like the show and
I'm intrigued by the idea, I'm just not sure how to trade a product
- Question from Little Tim - Why do you think GLD is
"underperforming" right now from a volatility perspective? SLV
seems to be stealing all of the thunder in the volatility realm
these days.Question from Theodore Grey - I enjoyed your recent
shows featuring financial advisors, but I found the reticence of
many advisors to even implement basic hedges very troubling. Why do
you think so many advisors and asset managers lack even basic
knowledge of volatility or how to hedge a portfolio with
- Question from Allie, Anchorage, AK - I have about $25,000 in my
trading account. I've learned a lot about the realized vs. implied
discrepancy by listening to this program, and I would like to
capture that in my own trading. Unfortunately delta neutral trading
is pretty much out of the question with my account balance. What do
you recommend for someone like me who would like to practice what
you guys preach, but doesn't have access to an institutional level
account? I'm sure many of your listeners are in a similar
- Question from Monster6 - Correlation is a growing concern
across asset classes; it's all but impossible to diversify
away risk in this marketplace. Would you guys advise your listeners
that a volatility/derivative component is the best way to truly
hedge/protect a portfolio these days? If so, which would you
The Crystal Ball: Perhaps the
Russell will be our salvation for a little action over the weekend.
Looking for price increases in all the major indexes in the future.