Volatility Views 312: VIX Laughs At Trade Wars

Volatility Review: What trade war? The market rallies despite the fact that the trade war has begun.

Market review:

• VIX Cash - 13.75, 1.25-points lower than last week.
• VVIX - 103, almost unchanged from last week.
• VIX Options - ADV: 496K, VIX call/put: 2.7/1, Total 7.04m (5.16m Calls, 1.88m Puts)
• A lot of VIX risk reversals hitting the tape today.
• VXX - 34.6,0.5-points lower than last week.

Volatility Voicemail: Flash poll

Which product or complex will experience the greatest #Volatility going forward as a result of this trade war? Gold? Crude Oil? Equities? Soybeans?

• Soybeans
• Gold
• Crude Oil
• Equities

Options question of the week: Traders generally fade volatility going into holidays (today notwithstanding). What's your favorite vehicle when you want to wager on the dark side of volatility? Short-term or Long-term - that's up to you.

• Short VIX Futures
• Long VIX Puts/Spread
• Long VXX Puts/Spread
• Short VIX Calls/Spreads

Listener questions and comments

• Question from LVist - Are you guys as surprised as me by VXX's stubbornness? It refuses to break the 30 handle.
• Question from Casey - Is it me or is the vol space much more boring after VIX/SVXY? Those were my two favs. Seems like there's not much to take their place. What's the new short vol play?

Crystal Ball: Your prognostication headquarters

Last week:

• Mark L. -12.55
• Mark S. -12.95

This week:

• Mark L. - 12.50
• Mark S. - 12.90
• Guest - 13.63