Now that the Trump-ocalypse is upon us, how are the markets reacting?
Download Volatility Views 230: Trump Volatility Bonanza
Volatility Review: The Trumpocalypse is here! What a week! VVIX: 102. So, about last night…Patient volatility seller ended up winning big. Volatility shorts cash in despite the shock U.S. election. Volume in non-U.S. trading hours set a new daily record.
Russells Weekly Rundown:
- VIX Options – A crazy volume week!
- Mon – 1.05M, Tues – 1.05M, Weds – 1.03M, Thurs – 1.08M
- Total 7.08m (4.62m Calls, 2.46m Puts)
Earnings Volatility:
- Walt Disney Company
- Nvidia
- Nordstrom
Volatility Voicemail/Options #QuestionOfTheWeek
$SPX Weds Weekly straddle says 2% move through election. How much will SPX / $SPY move through Weds 11/9?
- Over 3% – crazy move
- Between 2-3% – big move
- Between 1-2% – mild move
- Less thastockn 1% – meh
Listener questions and comments:
- Question from Brian: Hi Mark, your shows are the best known to me. Congratulations on your success. I have a topic/question for Volatility Views. I am trying to get a sense of how viable XIV will be in the long term. Are there red flags for ETFs/ETNs that would indicate whether or not they will go broke at some point? Are the bigger ETFs/ETNs a safer bet or is it the ETFs/ETNs that deal with future contracts the ones that end up in trouble? I appreciate and value your advise.
- Question from Mike The Bookie:?Yeah, the ETF based volatility indexes. Is here a good place to bracket UVXY or VXX?
Crystal Ball: Wild prognosticating
Last week:
- Mark L. – 18.50
- Mark S. – 10.80
- Russell – 23.50
This week:
- Mark L. – 15.00
- Mark S. – 12.00
- Russell – 13.50