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Volatility Views

Volatility Views 594: Lessons Learned from a Wild Week

Aug 9, 2024
In this insightful discussion, Mark Sebastian from Option Pit and Russell Rhoads of the Kelley School of Business dive into the recent chaos in the volatility markets. They unpack the startling spike of the VIX cash hitting 65 and share strategies employed by SVIX to manage risks using VIX calls. Expect trading insights on products like UVIX and predictions for the future of VIX, all delivered with a blend of humor and expertise. It's a rollercoaster of market analysis that promises both education and entertainment!
57:34

Podcast summary created with Snipd AI

Quick takeaways

  • Recent spikes in the VIX, driven by negative global news, reveal how external factors quickly shift market sentiment and volatility.
  • Traders responded to heightened uncertainty by significantly increasing trading activity in the options market, favoring puts to hedge against risks.

Deep dives

Current Volatility Trends

Recent market trends indicate a significant increase in volatility as traders responded to negative news impacting global markets, notably stemming from Japan. This resulted in a notable spike in the VIX, which reached heights not seen in years, leading to a state of heightened market anxiety. With economic indicators pointing towards potential recession, traders grew skittish, causing fluctuations in the VIX and prompting discussions of liquidity issues that may have affected actual trading conditions. This illustrates how external economic factors can rapidly alter market sentiment and volatility levels.

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