Jul 2, 2018
Volatility Review: Looking back at the week from a volatility
- VIX Cash - 15
- VVIX - 104
- VIX Options - ADV: 496k, VIX call/put: 2.7/1, Total 6.78m
(4.96m Calls, 1.81m Puts)
- VXX - was 40, now 35.
- Hedge Fund That Made 6,000% on VIX Jump Bets on Next Blow-Up -
What is UVXY?
- UVXY: Big ETF Outflows
Options Questions of the Week: We ask, you answer
This Week's Question: Crude Oil has been on a tear this week. We
know that many of you are trading options on this hot commodity.
Quite simply - which options product are you using to slake your
thirst for Crude Oil? WTI? USO? XLE?
Last Week's Question: Let's have some fun. These "entertainment"
stocks are pricing in big moves. Gun to your head: Which July ATM
straddle would you rather own in your portfolio? WWE? DIS? WYNN?
- WWE July ATM Strad: 7
- WYNN July ATM Strad: 12
- SEAS July ATM Strad: 2
- DIS July ATM Strad: 5
Listener questions and comments:
- Question from Btburg:What is the best way to trade these
inverse VIX ETFs going forward? If I'm long XIV does it make sense
to always have some VIX calls in my back pocket just in case?
Doesn't that get expensive really quick? What about spy puts? Or
should I just have puts on the inverse ETF in case the
counterparties get cold feet?
- Question from BFolk - I like the suggestion of a short 30 or
60-day call 1x2 in VXX to hedge my longer term puts. How did that
strat work out this week? Something like sell near OTM buy 2
farther OTM same month. May help motivate me to put some on this
- Question from Folfox - @Options Do you prefer iron condor vs.
iron butterfly? (I know 1 strategy won't work every time, but what
scenario is preferred).
- Question from RevTimTom - What's your favorite way to trade
- Question from Gglee - Buying collars means buying skew and
paying up. So does it stand that the best spy trade is selling skew
by selling 25 delta puts and buying 25 delta calls? Maybe add a
cheap hedge with 5 or 10 delta put in case worst comes to pass?
Right now I can sell the SPY Oct 25D put for .55, buy the Oct 25D
call for .55 and then buy put hedge for about .20 net outlay.
Crystal Ball: Your prognostication headquarters
- Mark L. -12.05
- Mark S. -11.55
- Mark L. - 12.55
- Mark S. - 12.95