• HOST: MARK LONGO, THE OPTIONS INSIDER MEDIA GROUP
  • CO-HOST: MATT AMBERSON, PRINCIPAL, OPTION RESEARCH & TECHNOLOGY SERVICES
  • CO-HOST: CHRIS HAUSMAN, PORTFOLIO MANAGER, MANAGING DIRECTOR OF RISK, SWAN GLOBAL INVESTMENTS

THE BUZZ

  • THOUGHTS ON THE CURRENT MARKET/VOLATILITY ENVIRONMENT
  • CATCH US UP ON EARNINGS SEASON – ANY SURPRISES THIS CYCLE?

 OPTIONS 101: PREPPING FOR THE RETURN OF VOLATILITY?

  • THIS IS NORMALLY THE SEASON WHEN VOLATILITY RETURNS TO THE MARKET AFTER THE SLEEPY DOG DAYS OF SUMMER.
  • HOWEVER, THE ESCALATING TRADE WAR HAS THROWN A WRENCH INTO THE WORKS BY ELEVATING VOLATILITY ACROSS THE BOARD.
  • THIS IS STILL A GOOD SEASONAL TIME TO DO AN OVERVIEW OF THE OFFERINGS AVAILABLE IN THE VOLATILITY COMPLEX
  • “STRAIGHT VOLATILITY”
  • SPX VOLATILITY PRODUCTS – AKA VIX
  • SPY VOLATILITY PRODUCTS – AKA SPIKE OPTIONS
  • VOLATILITY ETPS –  VXX, SVXY AND TVIX
  • HUGE ISSUES WITH BUYING AND HOLDING ALL OF THESE DUE TO THE NEGATIVE ROLL YIELD IMPACTING MOST OF THEM.
  • OTHER THOUGHTS/SUGGESTIONS ON WAYS THAT ADVISORS CAN TRADE/HEDGE VOLATILITY FOR THEIR CLIENTS?

SUMMERTIME MAIL BAG PALOOZA SEGMENT PART 2

  • QUESTION FROM SERGEI: Hello! Thoughts please on this article from bloomberg on the options volatility. Thank you again. Nomura Says ’50 Cent’ Has Banks Scrambling for VIX Hedges – https://ca.finance.yahoo.com/news/nomura-says-50-cent-wall-123747682.html
  • COMMENT FROM JOE V: This might be the best indicator of all time! 
  • QUESTION FROM ALLEN SIDMUND: What is a realistic number of SMAs on which I can expect to actively manage options positions using covered calls and short put spreads before I’ve spread myself too thin and can no longer devote my time to client development and management. 
  • QUESTION FROM 34DLD: Should I limit my options activity to the top 5-10% of my clients with larger equity portfolios and more sophistication to understand the strategies? Will that save me hassle in the long run?
  • QUESTION FROM NOBETA: Thank you very much for producing such a fine program. I would like to know more about calendar spreads in particular short calendars where the customer sells the longer term contract and buys the shorter term contract. It seems like everyone talks about calendars from the other perspective? Why is that? Do you every use the short calendar in your arsenal. Thanks again and please thank Mark for creating this network. 
  • QUESTION FROM NELSON: Is it realistic to always have a long put against an equity portfolio or is that just too much drag on returns? I’ve approached this with a few clients and had some embrace it and others push back against the cost.

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