Volatility Views 33: The Art of Managing Volatility

Volatility Views 33: The Art of Managing Volatility

Volatility Review: VIX has been up and down around the 30-handle, but now it is time for it to begin to settle at a more normal level. Friday was quarterly expiration day in the Euro VoContract futures, with the front one-month and the December three-month going out. Volatility Viewpoint: Today's guest, Chris Cole, Managing Director at Artemis Capital Management, sits down to discuss VIX options and futures, volatility doldrums, and the trading approach at Artemis. Crystal Ball: VIX is a coin flip with regard to both the long-term and short-term mean. The gang looks at the January one-month and March quarterly Euro VolContracts and their implied volatilities versus potential realized vol.

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Volatility Views 33: The Art of Managing Volatility

Volatility Views 33: The Art of Managing Volatility

Volatility Review: VIX has been up and down around the 30-handle, but now it is time for it to begin to settle at a more normal level. Friday was quarterly expiration day in the Euro VoContract futures, with the front one-month and the December three-month going out. Volatility Viewpoint: Today's guest, Chris Cole, Managing Director at Artemis Capital Management, sits down to discuss VIX options and futures, volatility doldrums, and the trading approach at Artemis. Crystal Ball: VIX is a coin flip with regard to both the long-term and short-term mean. The gang looks at the January one-month and March quarterly Euro VolContracts and their implied volatilities versus potential realized vol.

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Option Block 112: VIX Resistance

Trading Block: VIX cash back above 30, how long can it last? MF Global disaster continues to get worse, with no clue as to where customer money is. Customers are making additional margin payments because their funds at MF Global are frozen. This disaster may have ramifications for years to come. Metals/commodity rundown — volatile gold and silver. Ford brought their dividend back after five years. Odd Block: Three-legged spreads. Unusual activity in Yahoo!, Inc. ? (YHOO) andLiz Claiborne, Inc. ? (LIZ). Plus, an update on last week's activity review: RIMM and Darden Restaurants (DRI). Strategy Block: Uncle Mike Tosaw discusses the simulated index concept and how to relate it to higher income and higher net worth individuals. How to use a life insurance policy if you exceed your retirement plan contribution level. Around the Block: The ongoing turmoil in the Eurozone is continuing to keep the VIX in limbo. RIMM earnings next week. Walgreens producing very high vol levels.

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Volatility Views 32: Larry the Legend

Volatility Views 32: Larry the Legend

Volatility Review: Last week saw a lot of volatility action. VIX downside positions are just starting to pan out. Are people buying insurance or are they buying gamma? Seasonal drain to volatility. Euro VolContract update–one week left to go in the front-month contract.Volatility Viewpoints: Larry McMillan, recent winner of The OIC's Sullivan Award, discusses how volatility derivatives have changed the landscape of vol trading. Larry waxes nostalgic on the days when there weren't puts on every stock. The virtues of upside VIX calls versus SPX puts to hedge a portfolio. Discussing the fine art of gamma scalping.Crystal Ball: Wild prognosticating from the panel. The market will have trouble supporting current vol levels. Sebastian likes buy-write opportunities in gold right now. Larry still has a bullish bias to the market. With expiration week for the front month upon us, Don sees Euro vol settling at around 12.40-12.75.

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Volatility Views 32: Larry the Legend

Volatility Views 32: Larry the Legend

Volatility Review: Last week saw a lot of volatility action. VIX downside positions are just starting to pan out. Are people buying insurance or are they buying gamma? Seasonal drain to volatility. Euro VolContract update–one week left to go in the front-month contract.Volatility Viewpoints: Larry McMillan, recent winner of The OIC's Sullivan Award, discusses how volatility derivatives have changed the landscape of vol trading. Larry waxes nostalgic on the days when there weren't puts on every stock. The virtues of upside VIX calls versus SPX puts to hedge a portfolio. Discussing the fine art of gamma scalping.Crystal Ball: Wild prognosticating from the panel. The market will have trouble supporting current vol levels. Sebastian likes buy-write opportunities in gold right now. Larry still has a bullish bias to the market. With expiration week for the front month upon us, Don sees Euro vol settling at around 12.40-12.75.

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Option Block 111: The Waffle and Egg Indicator

Trading Block: VIX was all over the map today. Stocks opened strong but rumors of an S&P downgrade warning to Germany killed some of the optimism. The ups and downs of trading Groupon. Trading the wheel of fun: keeping an eye on Dollar General and GNC. Odd Block: Unusual activity in Angie’s List – (ANGI), Darden Restaurants, Inc. – (DRI), and American Eagle Outfitters, Inc. – (AEO). Plus an update from last week on RIMM.Xpress Block: John Grigus from OX discusses the Van Eck ETFs and the news concerning ETFs and options. Around the Block: Jobless claims on 12/08. Michigan Sentiment later this week. The ongoing kurfuffle in the Euro zone. RIMM earnings on 12/15.

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Option Block 110: Worthless December Lottery Tickets

Trading Block: A massive explosion to the upside, what was the impetus for the 400 point rally? The S&P 500 has climbed 3% or more in a day 36 times in the past three years compared with 27 times for the nine years before, according to Bloomberg. EU battling to hold itself together. The first of the month means "Options Numbers Day." Odd Block: Unusual activity in Research in Motion, Ltd. (RIMM) and Barnes & Noble, Inc. (BKS) Xpress Block: Tim Navabi shares the news from Direxion Shares that their 2x bull and bear ETFs will now be converted to 3x. Also, how did OX handle the frenzied rally in the past days? Around the Block: Non-farms tomorrow, but almost a back-burner issue compared to the wild and irrational exuberance in the market recently. VIX finally takes a turn below 30, a long awaited event.

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The Advisors Option Premiere Episode: Spreading the Gospel of Options

The Advisors Option Premiere Episode: Spreading the Gospel of Options

Welcome to The Advisor's Option – The first radio program for registered investment advisors, asset managers and financial planners interested in managing risk using options. Join your hosts Mark Longo, Mike Cavanaugh (Know Your Options, Inc.), and Eric Cott (The Options Industry Council) as they dive into options education, outline tricks of the trade and update advisors with the latest industry buzz.

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Option Block 109: Danger is in the Air

Trading Block: A strong move to the upside after the holiday weekend. VIX at 30 yet again ? is this becoming the new norm? Strong Black Friday sales compelling market. Metals/commodity rundown. Odd Block: Unusual activity in MGIC Investment Corp. (MTG); BlackRock, Inc. (BLK), and Charles Schwab Corp. (SCHW). Plus, an update on Guiled (GLID) from last week. Xpress Block: Rob discusses the extreme polarity last week from doom and gloom to consumer uplift on Black Friday. Has there been an uptick of people looking at SPXpm at OX? Around the Block: The afterglow of Black Friday and Cyber Monday are still driving all the major indices up. Dark clouds looming on the horizon in Europe. Groupon playing the mini-widowmaker down 9%. Unemployment, housing numbers, and non-farms later this week.

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Long and Short of Futures Options Episode 4: Diving Back into Ags

What to Know: Discussing crop reports and their impact on the ag options. Breaking down the recent volume trends in corn & wheat options – significant interest in upside protection in corn right now. Many traders, hedgers and speculators migrating into the weekly options vs. longer-term optionsWhat's New: Corn and wheat volatility are on nearly equivalent levels – an unusual development that holds a great deal of potential for options traders. At these price/volatility levels, can wheat be an effective feed substitute for corn? What's on Your Mind? Taking on listener questions

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Volatility Views 31: Live from Las Vegas

Volatility Views 31: Live from Las Vegas

Volatility Review: It's been a rough week for the equity markets. With the weekend decay out, and the super committee's report due this week, is it time to buy or sell the VIX? Is leverage causing a rise in volatility? What's going on with the Euro FX VolContract, and what does realized volatility look like right now? What's the latest news on the Dec one-month VolContract?Volatility Viewpoints: Bob talks about the long-term future of volatility, the volatility of volatility, and how efficiency affects the market. Also, Bob discusses his initial thoughts of the article in Futures magazine written last week.Crystal Ball: With the VIX at 33, we need the market to move 2% per day to pay for VIX. Is that possible, or are we looking at a potential meltdown? If we see the VolContract fall anywhere below 13%, should we be looking to get long FX vol?

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Option Block 108: Super Committee VIX Spreads

Trading Block: Dow back in the red for the year. Debt cutting debate concerns hit the market — reminiscent of the debt debate from August, only you don't see everyone loading up on VIX puts this time. Did they learn their lesson? Could more DC gridlock trigger another debt downgrade? Odd Block: Unusual and interesting activity in: Gilead Sciences Inc. (GILD) NII Holdings, Inc. (NIHD) Strategy Block: Andrew Giovanazzi from Option Pit discusses getting short the VIX without overloading on risk. Around The Block: Super committee debate dominates the outlook for this week — how do you position for this? Apple below the 375 handle for the first time in a while — maybe the best is behind Apple?

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