Trade Wars? VIX laughs in your general direction.
Listen to Volatility Views 312: VIX Laughs At Trade Wars
Volatility Review: What trade war? The market rallies despite the fact that the trade war has begun.
Market review:
- VIX Cash – 13.75, 1.25-points lower than last week.
- VVIX – 103, almost unchanged from last week.
- VIX Options – ADV: 496K, VIX call/put: 2.7/1, Total 7.04m (5.16m Calls, 1.88m Puts)
- A lot of VIX risk reversals hitting the tape today.
- VXX – 34.6,0.5-points lower than last week.
Volatility Voicemail: Flash poll
Which product or complex will experience the greatest #Volatility going forward as a result of this trade war? Gold? Crude Oil? Equities? Soybeans?
- Soybeans
- Gold
- Crude Oil
- Equities
Options question of the week: Traders generally fade volatility going into holidays (today notwithstanding). What’s your favorite vehicle when you want to wager on the dark side of volatility? Short-term or Long-term – that’s up to you.
- Short VIX Futures
- Long VIX Puts/Spread
- Long VXX Puts/Spread
- Short VIX Calls/Spreads
Listener questions and comments
- Question from LVist – Are you guys as surprised as me by VXX’s stubbornness? It refuses to break the 30 handle.
- Question from Casey – Is it me or is the vol space much more boring after VIX/SVXY? Those were my two favs. Seems like there’s not much to take their place. What’s the new short vol play?
Crystal Ball: Your prognostication headquarters
Last week:
- Mark L. -12.55
- Mark S. -12.95
This week:
- Mark L. – 12.50
- Mark S. – 12.90
- Guest – 13.63