Featured in today’s Volatility Views: Weekly VIX futures, what gold is NOT, and Mark Shepherd.
Click here to access Volatility Views 167: Consulting on Volatility Strategy
- Volatility Review: In this episode, we are joined by guest co-host Mark Shepherd, Derivatives Strategy Consultants.
- VIX Cash: VIX selloff finally over – VIX cash stabilized around the 13 handle this week.
- VIX Futures: New weeklies listed this week.
- VIX Options: Calls over puts: 2.9 / 1. Solid volume week – most days over 600k contracts. Total 5.83m (4.35m Calls, 1.48m Puts)
- Gold: GVZ: 19.39 – Spiked nearly 5 handles this week. Gold volatility skew – clear concern in the near term, longer-dated options showing some bullish positioning as well.
Volatility Voicemail: Listener questions and comments.
- Question from LAX66 – Do you guys know where I can find a list of the pensions and endowments that utilize options and futures for hedging purposes? I would like to see if my money is safe and being put to good use. Is that info publicly available?
- Question from Bailiwyck – I would like to submit a question from the volatility views radio program. What is the problem with GVZ? Why are there no products to trade with it? I looked it up earlier this week only to find zero contracts traded. Did they delist them? You would think this product would be very popular in a week like this.
- Question from TalbotL – Let me see if I have this straight. The front end of the VIX curve is where all the crazy stuff happens. So I want to avoid that in my hedges and “kick the can” past it. The longer portion of the VIX curve is where things typically get pricey. So am I correct in assuming that somewhere in the midpoint – around 3 months – is the goldilocks spot where I should buy my porridge? Is that the most effective place to purchase VIX futures for hedging from a cost to vega perspective?
Crystal Ball: Wild prognostications about the future of volatility.