Volatility Views 171: Breaking Down an Absolutely Crazy Week

Published: Aug. 31, 2015, 8:10 p.m.

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Volatility Review: Black Monday Redux

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  • The Dow Jones Industrial Average briefly slumped more than 1,000 points, its biggest point-drop ever.
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  • VIX Cash hit 53.29 at 10am and VIX did not update for 30 Minutes as options quotes got erratic.
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  • AAPL hit low of $92 before rebounding.
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  • VVIX: Hit a high of 212 on Monday 8/24.
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  • VXUP/VXDN: VXUP did 813k shares on Monday - VXDN 650k.
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  • Crude Oil: OVX - 51.80, OIV - 51.12
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Volatility Voicemail: Listener questions and comments

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  • Question from Inchon55 - Was this the week that VIX traders have been waiting for? It seems like they have been buying calls in the 20-strike range all summer with no payoff. Now we finally got the pop they needed. Will this lead to a flurry of more call buying in the months to come?
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  • Question from Jim J - Question for Volatility Views - This was a crazy week for Vol traders. What was the craziest thing that jumped out at you?
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  • Comment from JoeJoe: Why is everyone making such a big deal about the selloff on Monday? Flash crash? Market manipulation? That is BS! It is August. Everyone knows the market is thin in August. Does this really come as a surprise to anyone?
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