VOLATILITY REVIEW
Trade war premium came and went.
SPIKES – 15.75, down 4.25-points from last show
VIX Cash – 15.5, 4-points lower than last week
VVIX – 95, 8-points lower than last show
VIX Options – ADV: 668k, Total 10.2m (7.42m Calls, 2.73m Puts)
VXX – 28, 2-points lower than last show
Earnings Highlights:
Thursday – Walmart, Nvidia, Pinterest
Friday – John Deere
VOLATILITY VOICEMAIL
Comment from J3Dingle – I saw on Bloomberg that one of the 20+ Democrats running for president owes UVXY in size in his portfolio. That alone should be a disqualifying factor.
Question from T Lima – Heard you guys hitting on 1×2 put spreads in vix. What about VXX? There are lots of juicy puts 1x2s lining up for small outlays and maybe even credits. I’m looking at Dec 28-23 1×2 that I can do for around $.45-$.65. There are similar spreads lining up across the term structure. Also – Do you have a preference to longer term or shorter term when trading 1×2 put spreads in these products?
CRYSTAL BALL
Next week:
MARK: 14.75
Andrew – 14.25
Dave – 16.00