Volatility Views 16: Risk Premium
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Volatility Views 16: Risk Premium
Volatility Review:\\xa0 Interesting week with the market not doing much, but volatility increased anyway.\\xa0 The market\'s "in a pickle" until the debt issue is resolved.\\xa0 July 8 was the fifth expiration for the Euro VolContract, which showed greater than 29% movement in the price during the life of the contract.\\xa0 The August contract has provided 16% vol movement in the first three days of the contract.
Listener Mail: Mark and Don answer questions from listeners, including: Why did an option price drop as the stock price went up, and; what is a sellers\' premium in options?
Crystal Ball:\\xa0 Mark foresees no debt deal over the weekend.\\xa0 If anything can push VIX to 30, will this be the event that does it?\\xa0 Front month Euro vol likely to go lower.