VV 373: The Wheel of Volatility Decisions

  • HOST: MARK LONGO, THE OPTIONS INSIDER MEDIA GROUP
  • CO-HOST: MARK SEBASTIAN, THE OPTION PIT
  • MIAX HOT SEAT CO-HOST: JOHN SMOLLEN, MIAX EXCHANGE GROUP.
  • SPECIAL GUEST CO-HOST: ERIC METZ, SPIDERROCK ADVISORS 

VOLATILITY REVIEW SEGMENT

  • EARNINGS/TRADE WAR/BREXIT OPTIMISM HAS STALLED
  • SPIKES: 14.60 – DOWN 1.9 FROM  LAST SHOW 
  • VIX CASH: 14.60 – DOWN 1.8 FROM LAST SHOW
  • VVIX: 91 – DOWN 4 PTS FROM LAST SHOW
  • VIX FUTURES CURVE: STILL IN CONTANGO 

SPIKES FUTURES

  • Volatility Index SPIKES Futures are expected to launch on MGEX on November 18, 2019, subject to Commodity Futures Trading Commission (CFTC) approval. SPIKES Futures will be available on MGEX via the CME Globex platform, providing the SPIKES Futures product with significant distribution from day one.

HOT VOLATILITY TRADES 

  • SPIKES OPTIONS
  • VIX OPTION
  • VXX

EARNINGS VOLATILITY

  • NFLX
  • IBM

VOLATILITY VOICEMAIL

  • QUESTION FROM LL07: I found the comments by Simon Ho on the last episode somewhat alarming. The exchange needs to get approval from regulators to offer tied trades to customers? Can’t a broker simply quote a tied trade using combos? Why do they need regulatory approval for tied trades after the options are already approved? What am I missing?
  • QUESTION FROM ENCARTO: Am I better off buying a $SPY put or a $VIX call to hedge my portfolio?
  • COMMENT FROM TOM BRENTON: I think the upcoming spikes futures will be interesting. Looking forward to trading them against the options. 

CRYSTAL BALL

 WHERE WILL VIX/SPIKES BE NEXT WEEK?

  • MARK: 14.65
  • MEATBALL: 13.85
  • ERIC: 14.80

 

 

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