What’s Your?Volatility Weapon of Choice

Listen to Volatility Views 324: Volatility Weapon of Choice

Volatility Review: A look back at the week from a volatility perspective

  • Non-farms come in lower than expected
  • Unemployment drops to 3.7%, the lowest since 1969
  • Bitcoin vol falls to lowest levels this year
  • VIX up 4.3 from last week
  • VVIX up 19 from last week
  • VXX nearly unchanged from last week

Volatility Voicemail: Volatility Flash Poll

What is your weapon of choice when trading volatility? VIX VXX SPX SPY

  • VIX
  • VXX
  • SPY/ SPX options
  • Other

Listener questions and comments:

  • Comment from Martin Ryan – TVIX, UVXY, SVXY.I’ve given you three good alternatives (one an inverse). There is nothing little about either TVIX or UVXY – both have good liquidity, tight spreads and good trading price action. The VIX imploded, but the aforementioned are doing well as effective alternatives to options.
  • Comment from Ryan – ETF – SQQQ
  • Question from Alacor – Like the show. Tried my hand at crystal ball. Not good. Heard you talk about straddle runs in SPX. Are there any products that package hedged ATM straddles as a product? Maybe they offer to delta hedge as well?
  • Question from Telly0 – Are there any long VIX vehicles that don’t erode to zero?
  • Question from T Dog – Is it better to only take the short volatility trades and ignore the long volatility trades?
  • Question from one0761 – Are we in the midst of a major correction.

Crystal Ball: Wild and reckless prognostication

Last week:

  • Mark L. – 11.75
  • Mark S. – 12.15
  • Bill – 13

This week:

  • Mark L. – 12.55
  • Andrew – 13.25