Options Industry

Volatility Views 328: Apple Vs. VIX


In an epic battle for the ages, today we give you Apple Vs. VIX

Listen to Volatility Views 328: Apple Vs. VIX Volatility Review: A look back at the week from a volatility perspective. Apple and Non-farms are on the radar today. A rough month for equities:
  • 9% Drop - the largest monthly Nasdaq drop since Nov 2008.
  • 7% Drop - largest S&P monthly drop since Sept 2011.
Apple screwed the pooch:
  • Apple tumbles 7% after earnings on light guidance.
  • Market cap back below $1T
Earnings Highlights from Last Week:
  • Tuesday - GE, Sony, BP, FB, eBay, Pfizer, Coca-Cola
  • Wednesday - GM
  • Thursday - Apple, Starbucks, Weight Watchers, Spotify, Cigna, Dow/DuPont
  • Friday - ExxonMobil, Cboe, Alibaba, Chevron, Berkshire Hathaway
Volatility indexes:
  • VIX Cash - 20.5, 6.5-points lower than last show.
  • VVIX - 99, 21-handles lower than last show.
  • VIX Options - ADV: 609k, VIX call/put: 2.4/1, Total 8.24m (5.84m Calls, 2.40m Puts)
  • VXX - 37.5, 3-points lower than last show
Volatility Voicemail: Options question of the week: Volatility is all over the place these days. Some say it's too cheap, others say it's too expensive. Either way they want to trade it. What's your weapon of choice when trading the wacky world of volatility?
  • VIX options/futures
  • VXX options/ shares
  • TVIX shares
  • SPX / SPY options
Listener questions and comments:
  • Question from Alan Jackson -You guys say to close or roll ahead of VIX expiration to avoid the settlement flimflammery. So when should I do it? The day before settlement? The last hour of the day? A few days before? What's the ideal closing scenario?
  • Question from Numrr - What's your preferred ratio of puts to underlying when trading VXX. Obviously you have to overweight with puts but how much? I like to keep 3 OTM puts on for every share of VXX. That way I'm biased short but also have something in my back pocket for weeks like this. What are your thoughts on that ratio?
Crystal Ball: Wild and reckless prognostication Last week:
  • Mark L. - 18.15
  • Mark S. - 17.25
  • Guest - 18.50
This week:
  • Mark L. - 18.35
  • Mark S. - 16.50

About Mark S. Longo


Mark S. Longo is the founder of The Options Insider Inc. - a firm dedicated to providing free options information, education, news and analysis for options users. Whether it's on TheOptionsInsider.com, a leading online options destination; through Options Insider Radio, the world's only radio network for options users; or through a growing number of newsletters and live events, Mr. Longo continues to provide new ways to spread the word about options.Mr. Longo's analysis of the options market has appeared in a wide variety of domestic and international publications, including The Wall Street Journal, Financial Times, Reuters, Futures Magazine, and more. As one of the few industry commentators with practical options experience, he has developed a substantial following among industry veterans and newcomers looking for insight into this complex market. Mr. Longo began his career as an options trader on the floor of the Chicago Board Options Exchange.

Author's web site: https://theoptionsinsider.com


View Mark S. Longo's post archive >

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The Options Insider Radio Network

The Options News Rundown

Your source for the most important news and information from the world of options.

The Options News Rundown

The Options Insider Radio Network

All of our radio programs in one convenient place.

The Options Insider Radio Network

Options Insider Radio

The original options podcast. Features interviews with leading options figures.

Options Insider Radio

The Option Block

This high-octane program features education, analysis, strategies and unusual activity.

The Option Block

Volatility Views

The premier radio program for volatility traders.

Volatility Views

The Long And Short Of Futures Options

Your source for futures options information.

The Long And Short Of Futures Options

The Advisor's Option

Arming advisors with the info necessary to manage risk.

The Advisor's Option

Options Boot Camp

Get into peak options trading shape.

Options Boot Camp

Options Insider Special Events

Compelling panel & special event recordings from the options world.

Options Insider Special Events

OIC's Wide World of Options

A dynamic mix of current events, investor resources, & strategy insights.

OIC's Wide World of Options

Trading Tech Talk

We break down all the amazing technology that takes your trades from the click of a mouse to the clearinghouse.

Trading Tech Talk

Options Playbook Radio

Break down cutting-edge options strategies and learn how to incorporate them into your portfolio

Options Playbook Radio

Options Oddities

We track all the unusual options trading activity on Options Oddities.

Options Oddities

This Week in Futures Options

The program designed to help active futures options traders stay on top of this ever-changing marketplace. 

This Week in Futures Options

The Business Show

If you like business, if you like humor, if you like stock symbols, this is the podcast for you.

The Business Show