May 14, 2012
Volatility Views 53: An Insider's View of Risk Management
Volatility Review: There is an extra note of tension in the market with S&P vol waiting for the other shoe to drop. NASDAQ vol is slightly higher. JPMorgan news does little to rattle VIX.
Volatility Viewpoint: Today's guest, Todd Petzel, the Chief Investment Officer at Offit Capital, sits down with Mark and Don, and discusses myriad aspects of volatility and risk management. Topics include:
. The instruments he uses to manage portfolio risk
. Structured VIX products
. Go-to products
. Financial investors and their lacking use of options
. Pending regulations concerning position limits
Crystal Ball: Sebastian sees the market bouncing around in the short term. A safe trade may be shorting U.S. treasuries. There is still a continued contraction between implied risk premium and realized vol levels. Vol may go higher, but without anything dramatic moving it.