Volatility Views 193: Talking Electoral Volatility

Published: Feb. 22, 2016, 9:56 p.m.

Volatility Review: VIX. Contago has returned - VIX out of the red zone. CBOE Russel Study - Analyzing Russell 2000 Index options-based benchmark indexes designed to provide enhanced yields and risk-adjusted returns.

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  • VIX Options: A strong start to the week after the holiday. Total 4.95m (3.39m Calls, 1.57m Puts)
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  • Crude Oil: Recent rumors of supply action driving crude. Volatility remains on low end of recent elevated range. OIV/OVX - 67
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  • Gold: GVZ 25.67 - Extremely elevated. Gold rallying hard in recent sessions.
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Volatility Voicemail: Listener questions and comments

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  • Option Insider Question of the Week: How Many U.S. Options Exchanges Do We Need?\n
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    5% \xa0- 14 is perfect!

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    30% - The more the merrier.

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    60% - Make it stop!

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    5% - Other

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  • Question from George K. - What typically happens to volatility around a presidential election?
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Crystal Ball: The celebrations for Chinese New Year are over. Back to work!

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Where will VIX be next week?

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  • Sebastian: 26 on Thursday, 24.5 on Friday.
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  • Russell: Low 19s
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  • Mark: 21.50-22
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Who will win? Tune in next week to see