Preview Mode Links will not work in preview mode

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.

May 20, 2013

Volatility Views 91: Historical Lows

Volatility Review: Realized volatility plummeted. NASDAQ sits at 12.06 and S&P is even lower at 10.01. Don and Mark Sebastian called it.

Listener Mail: We answer listener questions.

  • Question from Jackson Engles, Garden City, NY: When you are analyzing historical volatility, what time frame is most relevant?  The past 30 days? The past three months, six months, etc.? What do you focus on in your analysis
  • Question from Timothy VanAllen, Baltimore, MD: I hope Mark didn't lose "the Voice of Options" at his unusual activity event. I couldn't make that one, but if you guys end up doing a Vol Views 100 live, I hope to be able to attend. My question has to do with vol skew. We hear a lot about the vol smile, but nothing really exhibits it. Can you guys think of any underlyings that really spike from a volatility perspective once they move away from the ATM in either direction?
  • Question from ATL16: Dollar/Yen is crazy lately. What's a good source for FX vol info or analysis?
  • Question from Phil Thomas, London, ON: In what conditions would the Vol Views Squad ever consider using upside VXX or VIX calls/verticals as a portfolio hedge? Or would you always stick with the good old S&P put spread/ratio spread?
  • Question from Mr. Pop: Quick question -- What is your favorite position for trading volatility?

The Crystal Ball: Fading the short-term, buying the long-term. How long can VIX stay this low?