Volatility Views 262: Crazy Nuke Vol Plus, VIX vs. VXN

Volatility Views

Volatility Review: A look back at the week from a volatility perspective.

• The VIX juice is loose
• OCC cleared futures volume in June reached 13,194,530 contracts, a 16% increase from June 2016.
• One of the most popular - and controversial - trades in the stock market (XIV) is showing no signs of slowing down. MRA attributes the spiking popularity to the participation of mom and pop investors.

Russell's Weekly Rundown:

• VIX Options: ADV - 691k, Total 8.8M (7m calls, 1.8m puts)
• Apple, Facebook Among Techs Facing Huge Volatility
• Volatility Voicemail: Listeners take over

Options question of the week:: Blue Apron $APRN is down over 10% from its #IPO price. Assuming #Options were listed, what trade would you make?

• Buy Dec 10 Call for $1
• Buy Dec 9 Put for $1
• Sell Dec 10 Call for $1
• Not Touching $APRN

Listener questions and comments

• Question from Avery Thompkins - Heard you guys debating theoretical low for XIV. I am down with 5. That makes sense. What about the other side? How high can it get? Is 1,000 in the conversation?
• Comment from Safari Dad - A day without volatility is a day without sunshine
• Question from Vtrader168 - While VIX is at historical low, but Nov VIX future still stay high at 16.20. Nov VIX was ~15.7 on 5/1 and 5/2. So the term structure is relatively steep. Any implication?

Crystal Ball: Your prognostication headquarters

This week:

• Mark L. - 9.85
• Mark S. - 10.05
• Russell - 10.23