Mar 4, 2013
Volatility Views 83: Check
Volatility Review: We had
quite a roller coaster week in terms of implied and realized vol.
The importance of vol of vol has been showcased.
Listener Mail: We have a huge
mail bag today.
- Question from Big Ned: Is it possible for an options trader to
ever truly be flat, aside from closing his positions?
- Question from Alex Gumble: How do market makers manage their
volatility exposure when everyone else in the pit (or bin) has the
same position? That seems like a difficult prospect.
- Question from Mikhail, Ukraine: Why do I need to worry
about Vega? I only sell strangles and iron condors. The risk is
clearly defined. If price is good, I sell. I price is not good, I
don't sell. It’s very simple.
- Question from Nix01: I liked Mark's article "VIX Activity -
Hedge or Sign" from 2/27. Can he elaborate on the show?
- Comment from Rich@PinProjects: Rule of 16, nice one! Thanks
- Question from Talos_A: Insider trading has been making many
headlines. Do you feel sudden spikes/drops in volatility on a
strike are the best indicators or unusual activity/insider
- Question from Nickel Silver: Where can I buy shares of VolX? Is
it publicly traded?
The Crystal Ball:
Sequestration! Keep an eye on Europe as well. Where can vol go