Apr 29, 2013
Volatility Views 88: Reestablishing the
Norm
Volatility Review: Vol has spiked in the last
week, going nearly as high as during the Italian elections. CBOE
computers go down. How does the inability to trade VIX affect the
overall markets?
Listener Mail: Mark and Don will take your
questions now.
- Question from Phil Z. - Mark, love the show! Could you explain what you, Don, and Mark S. mean when you say VIX has "roll risk"?
- Question from Tom S. - Do you agree with the theory of your guest that near-term S&P OTM puts are the most resilient to time decay?
The Crystal Ball: VIX should stay high for a
while, but will not go above 14%.