Volatility Views 295: Should Grandmas Trade SVXY

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

• VIX Cash - 18.75
• VIX Futures - The March future is very stubborn.
• VIX Options: ADV - 1.05M, VIX call/put: 2.3, Total 11.3m (7.76m Calls, 3.52m Puts)
• Goldman says options-market activity suggests pain ahead in these sectors
• Earnings: INTU, GDDY

Volatility Voicemail: Options question of the week

People are spooked about this market. Hedges are flying left and right. So the question remains: How are you hedging your portfolio right now?

• Metals: Gold, Silver, etc.
• VIX Calls / Volatility
• Index Puts (SPY, etc.)
• Bitcoin / Crypto

Listener questions and comments:

• Comment from The Blacklist Blockchain Trader‏ - The uncorrelated one known as bitcoin
• Comment from Mark Clyde Brant - Palladium ITM calls!
• Comment from StockMarket Blue - Hedging strategies are actually unwinding in the bond market, causing turbulence in equities markets. Those "trading" in the stock market are flying blind without understanding the carry trade/currency hedging or oversupply of tender re system liquidity. Or the short-VIX unwind.
• Question from J3dingle - Hi Mark, VXX is delisting in January 2019 (with the new Barclay's ETN VXXB to take its place). What will happen to the Jan 2020 VXX options? Thanks, Joseph
• Question from Harryhood - @Options Are the $VXX puts premium dropping with the underlying because the VIX futures term structure is backward? Thanks Mark. Just heard "Mr Umbrage" discuss it on the last OB show. I'm the guy who sent you the Vermont umbrage license pic btw.

Crystal Ball: Wild and reckless prognostication

Last week:

• Mark L. - 17.55
• Mark S. - 16.00
• Kevin - 19.00

This week:

• Mark L. - 16.75
• Mark S. - 15.00
• Bill - 14.00