Podcasts Business The Option Block Option Block 379: Explosion of VIX Stupidity

Option Block 379: Explosion of VIX Stupidity

Published: Oct. 17, 2014, 6:35 p.m.

Option Block 379: Explosion of VIX Stupidity

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Trading Block: Rocktober in full effect - hot on the heels of the madness yesterday, we saw another day with record swings and volume. Can nothing derail the bulls? NFLX earnings apocalypse? HBO Go spooking people?

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Odd Block: Combo unwind in iShares iBoxx $ High Yield ETF (HYG), puts close in Global X FTSE Greece 20 ETF (GREK), and collar closing in Yingli Green Energy Holding (YGE)

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Xpress Block: With the Viceroy still out, we will play the Trading Patterns Guessing Game in his absence.

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Mail Block: Listener questions and comments

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  • Question from Ajax11 - What is your take on the big VIX pop yesterday? Over 30 a bit overdone? Time to short some VIX here? Maybe time for a new term - Ebola premium?
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  • \xa0Question from Ian Taylor - We always hear about buying VIX calls or verticals during big spikes. How come no one ever talks about selling VIX puts or put spreads instead? Should they not also perform well under that situation?
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  • Question from Fargo Fan - Question for Uncle Mike: Where does he stand on his beloved Apple now that it\u2019s below the $100 strike? Any changes to position? I am thinking about potentially wheeling in starting with the Nov 90 weekly puts for $1.20 - thoughts?
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Around the Block: Can VIX close at a low vol for the day? Google earnings after the bell. \u2018Tis the season\u2026earnings season. AAPL earnings coming up on Monday.