Volatility Views 312: VIX Laughs At Trade Wars

Volatility Review: What trade war? The market rallies despite the fact that the trade war has begun.

Market review:

VIX Cash - 13.75, 1.25-points lower than last week. VVIX - 103, almost unchanged from last week. VIX Options - ADV: 496K, VIX call/put: 2.7/1, Total 7.04m (5.16m Calls, 1.88m Puts) A lot of VIX risk reversals hitting the tape today. VXX - 34.6,0.5-points lower than last week.

Volatility Voicemail: Flash poll

Which product or complex will experience the greatest #Volatility going forward as a result of this trade war? Gold? Crude Oil? Equities? Soybeans?

Soybeans Gold Crude Oil Equities

Options question of the week: Traders generally fade volatility going into holidays (today notwithstanding). What's your favorite vehicle when you want to wager on the dark side of volatility? Short-term or Long-term - that's up to you.

Short VIX Futures Long VIX Puts/Spread Long VXX Puts/Spread Short VIX Calls/Spreads

Listener questions and comments

Question from LVist - Are you guys as surprised as me by VXX's stubbornness? It refuses to break the 30 handle. Question from Casey - Is it me or is the vol space much more boring after VIX/SVXY? Those were my two favs. Seems like there's not much to take their place. What's the new short vol play?

Crystal Ball: Your prognostication headquarters

Last week:

Mark L. -12.55 Mark S. -12.95

This week:

Mark L. - 12.50 Mark S. - 12.90 Guest - 13.63