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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.

Jul 2, 2018

Volatility Review: Looking back at the week from a volatility perspective

  • 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?

  • WTI
  • USO
  • XLE
  • Other

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? SEAS?

  • 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 week.
  • 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 skew?
  • 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. Thoughts?

Crystal Ball: Your prognostication headquarters

Last week:

  • Mark L. -12.05
  • Mark S. -11.55

This week:

  • Mark L. - 12.55
  • Mark S. - 12.95