Volatility Views 317: Return of Dr. VIX

Volatility Review with very special guest co-host Russell Rhoads, Head of Derivatives Research at the Tabb Group.

• Volatility and selloffs return briefly during earning season.
• VIX Cash - 11.83, down slightly from last week.
• VVIX - 88, unchanged from last week.
• VIX Options - ADV: 440k, VIX call/put: 3/1, Total 7.95m (5.96m Calls, 1.99m Puts)
• VXX - 28.5, 2 points lower than last week.

Volatility options question of the week: VXX has finally broken through the 30 handle. Many of you are fascinated with the ongoing saga of the VXX Jan 10 Puts. OI is over 200k and thousands continue to trade for $.01. Our question: Would you trade these puts?

• 57% - Yes: Buy for $.01
• 14% - Yes: Sell for $.01
• 23% - No. It's Just Gambling
• 6% - I have enough VXX Puts

Volatility Voicemail: Listeners have their say

• Question from VolBug - When it's all said and done, is the bottom line that all inverse VIX products, whether short term or mid-term, can be subject to an acceleration event like SVXY given a high enough spike in the VIX? Thanks!
• Question from LL09 - Are you guys still trading these things? Saw 1k go up yesterday. Was that meatball?
• Comment from LVAC2 - Etrade wants to charge me $159.95 to buy 200 of those VXX Jan 10 puts. That's highway robbery!

Crystal Ball: Getting our prognosticating on

Last week:

• Mark L. -11.45
• Mark S. -12.76
• Guest - 12.05

This week:

• Mark L. -12.25
• Andrew -11.01
• Russell - 13.05