Volatility Views 270: Return of VIX Ratios Plus VXX Questions

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

The numbers:

• VIX Cash - 10.59, VVIX - 94.86
• CBOE Skew Index - 130.5

Russell's Weekly Rundown:

• VIX Options: ADV - 785k, VIX Call/Put - 3.3
• Total 12.0m (9.24m Calls, 2.76m Puts)
• OIV - 28.29
• OVX - 28.37

Volatility Voicemail: Options Question of the week:

Let's get cheap! If you had to buy "lottery ticket" December calls for $.05 in one name - which would you choose? #HomeRun

• AMZN
• AAPL
• Tesla
• VIX

Listener Questions and Comments:

• Question from JC - What am i missing? If VXX erodes why does anyone buy it?
• Question from Simyan - So I should just short VXX into the dust? Is that the deal?
• Question from Nils - So if the max length between splits is 3 years, and the minimum split price is $10 - aren’t the Jan 2019 20 puts for $2 a screaming deal?
• Question from TimTim - Do any other Vol products exhibit this erosion?

Crystal Ball: Wild prognostication

Last week:

• Mark L. - 11.75
• Mark S. - 11.00
• Russell - 10.80

This week:

• Mark L. - 10.15
• Mark S. - 10.65
• Russell - 11.00