Volatility Views 342: Trade the Erosion, Hedge the Explosion


Manage episode 227551994 series 1295531
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VIX Cash - 14.8, 2.5-points lower than last week.

VVIX - 80, 7.5-points lower than last show.

VIX Options - ADV:476k, Total 6.20M (4.86M Calls, 1.34M Puts)

VXXB - 32.5, 2.5-points lower than last show.

SVXY - 46, unchanged from last show.


#QOTW - $VXX is dead! Long Live $VXXB! There's a (somewhat) new kid on the #Volatility trading block. Are you trading $VXXB #options yet? If not, how are you getting your #Volatility fix these days? $VIX $TVIX $SVXY

  • 43% - Yes: Jumped into $VXXB
  • 11% - No: Spreads are too wide
  • 14% - No: Prefer $TVIX, etc
  • 32% - No: Prefer $VIX #options

Question from Thomas Weber - If I am short a deep in the money call in SPY (delta near 1), what are the odds I will be assigned the Thursday night before Friday expiration?

Question from Jelevis - Does it make sense to just get long ratio vertical put spreads in VXX as opposed to just buying the puts? Make the premium negligible so you don’t get hurt if it spikes against you in the near term. If it drops it will probably do so slowly so you have time to get out. Or you can just pick up VXX shares - at a hopefully low strike price so further erosion will be limited. Then you can always just wheel out of those if the need arises. Thoughts Vol swammis? This the VXX silver bullet trade?


Last week:

Mark L. - 17.25

Mark S. - 16.25

Next week:

Mark L. - 15.50

Andrew - 14.25

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