Nov 14, 2016
Volatility Review: The Trumpocalypse is here! What a week! VVIX:
102. So, about last night...Patient volatility seller ended up
winning big. Volatility shorts cash in despite the shock U.S.
election. Volume in non-U.S. trading hours set a new daily
Russells Weekly Rundown:
- VIX Options - A crazy volume week!
- Mon - 1.05M, Tues - 1.05M, Weds - 1.03M, Thurs - 1.08M
- Total 7.08m (4.62m Calls, 2.46m Puts)
- Walt Disney Company
Volatility Voicemail/Options #QuestionOfTheWeek
$SPX Weds Weekly straddle says 2% move through election. How
much will SPX / $SPY move through Weds 11/9?
- Over 3% - crazy move
- Between 2-3% - big move
- Between 1-2% - mild move
- Less thastockn 1% - meh
Listener questions and comments:
- Question from Brian: Hi Mark, your shows are the best known to
me. Congratulations on your success. I have a topic/question for
Volatility Views. I am trying to get a sense of how viable XIV will
be in the long term. Are there red flags for ETFs/ETNs that would
indicate whether or not they will go broke at some point? Are the
bigger ETFs/ETNs a safer bet or is it the ETFs/ETNs that deal with
future contracts the ones that end up in trouble? I appreciate and
value your advise.
- Question from Mike The Bookie: Yeah, the ETF based volatility
indexes. Is here a good place to bracket UVXY or VXX?
Crystal Ball: Wild prognosticating
- Mark L. - 18.50
- Mark S. - 10.80
- Russell - 23.50
- Mark L. - 15.00
- Mark S. - 12.00
- Russell - 13.50