Volatility Views 16: Risk Premium
Volatility Views 16: Risk Premium
Volatility Review: Interesting week with the market not doing much, but volatility increased anyway. The market's "in a pickle" until the debt issue is resolved. July 8 was the fifth expiration for the Euro VolContract, which showed greater than 29% movement in the price during the life of the contract. The August contract has provided 16% vol movement in the first three days of the contract.
Listener Mail: Mark and Don answer questions from listeners, including: Why did an option price drop as the stock price went up, and; what is a sellers' premium in options?
Crystal Ball: Mark foresees no debt deal over the weekend. If anything can push VIX to 30, will this be the event that does it? Front month Euro vol likely to go lower.
VolX Resources:
The Volatility Library that Don mentioned can be found here.
Also, there will be a new charting application on the VolX website coming soon. Check the Data section of the VolX website for the release.
Finally, if you're a fan of Mark Longo and Mark Sebastian, you can catch them live and in-person for the first ever live recording of The Option Block. If you have ever wanted to see what goes on behind the scenes when taping an episode, your chance has arrived. The entire gang will be live, in person at Elephant & Castle at 111 W. Adams Street in Chicago on July 21. Taping will start around 3:30, so you won't miss a minute of market action. Stop by, bring your friends, and come prepared for a podcast experience like no other.
If you're inclined to want to RSVP so that we make sure we have enough room, you can do so at the Options Insider Facebook page or by sending an email with your name & guest count to: Events@TheOptionsInsider.com
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Volatility Review: Interesting week with the market not doing much, but volatility increased anyway. The market's "in a pickle" until the debt issue is resolved. July 8 was the fifth expiration for the Euro VolContract, which showed greater than 29% movement in the price during the life of the contract. The August contract has provided 16% vol movement in the first three days of the contract.
Listener Mail: Mark and Don answer questions from listeners, including: Why did an option price drop as the stock price went up, and; what is a sellers' premium in options?
Crystal Ball: Mark foresees no debt deal over the weekend. If anything can push VIX to 30, will this be the event that does it? Front month Euro vol likely to go lower.
VolX Resources:
The Volatility Library that Don mentioned can be found here.
Also, there will be a new charting application on the VolX website coming soon. Check the Data section of the VolX website for the release.
Finally, if you're a fan of Mark Longo and Mark Sebastian, you can catch them live and in-person for the first ever live recording of The Option Block. If you have ever wanted to see what goes on behind the scenes when taping an episode, your chance has arrived. The entire gang will be live, in person at Elephant & Castle at 111 W. Adams Street in Chicago on July 21. Taping will start around 3:30, so you won't miss a minute of market action. Stop by, bring your friends, and come prepared for a podcast experience like no other.
If you're inclined to want to RSVP so that we make sure we have enough room, you can do so at the Options Insider Facebook page or by sending an email with your name & guest count to: Events@TheOptionsInsider.com
About Mark S. Longo
Mark S. Longo is the founder of The Options Insider Inc. - a firm dedicated to providing free options information, education, news and analysis for options users. Whether it's on TheOptionsInsider.com, a leading online options destination; through Options Insider Radio, the world's only radio network for options users; or through a growing number of newsletters and live events, Mr. Longo continues to provide new ways to spread the word about options.Mr. Longo's analysis of the options market has appeared in a wide variety of domestic and international publications, including The Wall Street Journal, Financial Times, Reuters, Futures Magazine, and more. As one of the few industry commentators with practical options experience, he has developed a substantial following among industry veterans and newcomers looking for insight into this complex market.Mr. Longo began his career as an options trader on the floor of the Chicago Board Options Exchange.
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