Volatility Views 328: Apple Vs. VIX
In an epic battle for the ages, today we give you Apple Vs. VIXListen 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 tumbles 7% after earnings on light guidance.
- Market cap back below $1T
- 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
- 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
- VIX options/futures
- VXX options/ shares
- TVIX shares
- SPX / SPY options
- 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?
- Mark L. - 18.15
- Mark S. - 17.25
- Guest - 18.50
- Mark L. - 18.35
- Mark S. - 16.50
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