Volatility Views 373: The Wheel of Volatility Decisions

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