Volatility Views 348: 1x2 Ratio Debates and Inverse Volatility

VOLATILITY REVIEW

A week of mild rallies, trade war progress and dwindling recession fears killing volatility.

Non-farms did not spark any volatility.

SPIKES - 12.8, down nearly 1.5-points from last show

VIX Cash - 13, 1-point lower than last week

VVIX - 79, 8-points lower than last show VIX Options - ADV: 523k, Total 10.0m (7.68m Calls, 2.32m Puts)

VXXB - 28, 1.5-points lower than last show

LYFT extremely volatile post IPO.

 

 

 

VOLATILITY VOICEMAIL

Comment from T Mal - I don’t do those for a credit 1x2, might as well reduce the distance between the strikes and pay a little Question from White Leo - When do you think we’ll see new inverse volatility tradeable products hit the market? I miss the old XIV days. Comment from Mark Brandt - Embrace the coming Volpocalypse Question from PBWO9 - Hello to my favorite vol show. Thx for keeping me company on the train every week. Love it! 5 stars on all platforms from me. My q - I know you’ve talked a lot about the feb “VIXocalypse” from last year and the meltdown of the inverse volatility products like xiv. Now with the benefit of hindsight do you think that the prevelance of inverse products made the volatility spike much worse than it otherwise would have been. Also is the inverse true and now that those products are dead are we somewhat insulated from a repeat of vix spiking back up to 80. Question from Jim Daily - Just to clarify. Are they really staying with $VXXB? There’s no name change coming?

 

 

CRYSTAL BALL

Last week:

Mark L. - 13.75

Andrew - 13.20

Simon - 13.25 Next week:

Mark L. - 13.25 Mark S. - 12.37

Simon - 12.65