Volatility Views 355: Mexican SPIKES and Binary TSLA Volatility

VOLATILITY VIEWPOINT

Guests:  Jimmy Heinz -  Equity Volatility Trader, Gelber Group & Brendan Carter,  Equity Volatility Trader, Gelber Group

 

 

 

VOLATILITY REVIEW

Trade war - Trump decided China wasn’t enough and picked a new trade war with Mexico

SPIKES - 18.5, up 2-points from last show.

VIX Cash - 18.5, 2.25-points higher than last week.

VVIX - 94.5, 2.5-points higher than last show

VIX Options - ADV: 708K

VXX - 30.5, 2.5-points higher than last week

 

 

 

VOLATILITY VOICEMAIL

Question from Cap Wulf - Looks like the dark days of VIX are finally over? Thoughts on the outcome? Do you agree with the judges decision?

Question from Michael Paige - I’ve heard your discussions about inverse volatility products and how we probably won’t see another one anytime soon. I find myself wondering how you could even construct one of those products int he modern era that would pass regulatory muster? All of them have an embedded function that they can effectively blow out at anytime. How can any provider offer this product without also having to carry so much upside protection that it becomes far too expensive to list. But I don’t see regulators allowing anything past them that has an embedded “acceleration event” in their prospectus again.

 

 

CRYSTAL BALL