Volatility Views 123: VIX Roars but VXST Whimpers

Volatility Views 123: VIX Roars but VXST Whimpers

Volatility Review: The week in vol

VIX:

• Russia sends tanks into Ukraine and volatility skyrockets
• Volatility plummeted after US involvement in the Middle East.
• CBOE stock as a hedge.

VXST:

• Big moves in only 24 contracts.
• Why is this product not catching fire?

VIX options:

• Settlements coming up soon.

Metals:

• GVZ dropping earlier this week, but taking a spike recently.

Volatility Voicemail: Listener questions and comments

Question from Lawrence - You were discussing if straddle prices exceeded earnings moves on your last show. I use software called "LiveVol” that has data for the trailing eight quarters, that shows this data for every company for the first and second expiration. It also shows implied vol crush for the first and second expiration. Their software is amazing. I like to sell iron condors before earnings to get short Vol. I usually use unbalanced condors with a short delta. I feel the underlying moves down for often and more violent. If the underlying moves up, the short Vega reduces loss a bit, in addition to the post earnings crush, as longs sell their protective puts. Love the show!

Crystal Ball: Where will VIX settle?