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Volatility Views

Volatility Views is the premier radio program for volatility traders. From interviews with leading industry guests to detailed analysis of volatility products, this program takes you inside the world of volatility trading like never before. If you are an experienced options trader looking to expand your understanding of volatility, or if you are simply curious about VIX and other volatility products, then this is the program for you.

Nov 21, 2016

Volatility Review: The Trumpocalypse is fading. VIX cash is back below 14. VVIX = 87, back below 100.

Russells Weekly Rundown:

  • If a Trump Presidency is scary, why is VIX so low?
  • VIX Options: A lighter volume week than last week - started strong, pushing 1M contracts on Tuesday, but then fell off. Total 3.88m (2.80m Calls, 1.08m Puts)
  • Crude Oil: OIV = 48, elevated compared to recent weeks - spiked to 53 on Wednesday.

Volatility Voicemail/Options #Question of the Week

$TSLA ($182.50, down 3%, IV30:41, HV30:31) Straddle says $8.20 move (4.5%) by Friday close. How much will $TSLA actually move?

  • 20% - In line: ($8-$8.50)
  • 37% - Beat Straddle: > $8
  • 23% - Less than Straddle: < $8
  • 20% - Sick of #Musk / $TSLA

Listener questions and comments:

  • Question from Alex Devers - What does the future hold in terms of social media sentiment and volatility. Is there a social volatility index out there already? If not is this something the folks at CBOE are cooking up?
  • Question from Avec - Has anyone studied the effect of selling weekly options vs monthly options INCLUDING commissions? Seems like that would be a big factor when writing so many contracts.

Crystal Ball: Reckless and wild prognostication.

Last Week:

  • Mark L. - 15
  • Mark S. - 12
  • Russell - 13.5

This Week:

  • Mark L. - 11.75
  • Mark S. - 12.25
  • Russell - 14