Volatility Views 257: Navigating Dangerous Waters with VXX Call Spreads

Today we have special guest co-host: Ophir Gottlieb, Capital Market Laboratories.

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

• VIX Cash: 9.89
• VVIX: 83.83 - Both almost unchanged from last week.
• CBOE Skew Index : 124.55
• VIX Futures till steep

Russell's Weekly Rundown:

• VIX Options: Mon - Closed, Tues - 264k, Weds - 545k, Thurs - 231k, ADV - 722K
• VIX Call/Put: 3.2/1
• Total 8.37m (6.39m Calls, 1.98m Puts)
• OIV - 29, OVX - 31

Volatility Voicemail: Options Question of the Week

AMZN just hit $1000. Will GOOGL do it next? GOOGL $1000 call expiring Friday = $4, $1000 Put = $8. How would you trade?

• Sell $1000 Call for $4 - 21%
• Buy $1000 Call for $4 - 38%
• Sell $1000 Straddle: $12 - 19%
• Sell $1000 Put for $8 - 22%

Listener Questions and Comments:

• Comment from FContangotrader - @Options @OptionPit @OptionVol @RussellRhoads I am very impressed from Mark and his poetry and ABC options and Uber rhyme
• Comment from Production One‏ - Replying to @Options @optionpit Meatball long 1W SPX straddle hit! Way to go Marco!
• Question from JavierLBC - Hi guys. I am new. found you on stocktwits. Did you see 36,000 sep 25 calls on VIX?

Crystal Ball: Wild and reckless prognostication.

Last week:

• Russell - 10.75
• Mark S. - 9.75
• Mark L. - 10.25

This week:

• Russell - 10.60
• Mark S. - 9.63
• Mark L. - 9.75
• Ophir - 10