Volatility Views 117: Getting Your Face Ripped Off By Vol

Published: July 1, 2014, 6:56 p.m.

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Volatility Views 117: Getting Your Face Ripped Off By Vol

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Volatility review: VIX cash had a range of 10.92 - 12.51 last week and has been on an uptrend for most of the week. A look at VIX futures. A riddle from Don. VXST, RVX options. Gold/metals vol: GVZ range of 12.64-13 last week. General downtrend in gold vol after sharp spike the prior week

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Volatility Voicemail: Listener questions and comments

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  • Question from One of the Men \\u200f@optionideamen: @Options VXX going to collapse into the 4th of July holiday. Buy the 7/11 28p. \\xa0Winner. \\xa0U can thank me later. \\xa0Freebie.
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  • Question from Atlantan -\\xa0I find the topic of volatility ETPs and their net impact on volume in the primary products very interesting. When products like VIX futures were conceived the notion of retail trading those products was inconceivable. To say nothing of retail oriented VIX products like VXX and others. But it seems like these products are the big drivers of volume these days. I might even go so far as to say they are essential. Do you agree? Is it even possible in the current environment to have a successful volatility future or option without a related ETP providing a steady source of volume? Fun show. I look forward to my weekly dose of all things volatility. Any chance of some ag vol rundowns in future episodes?
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  • Question from Giuseppe Varino -\\xa0To what do you attribute the recent vol divergence between the VIX and the Russell 2000? It seems as though Russell vol was unjustifiably inflated. Or do you feel this premium was justified? Do you expect this scenario to reemerge anytime soon or was this a relatively one-off situation?
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