Volatility Views 234: The Baskin Robbins of Volatility Skew

Published: Dec. 19, 2016, 7:19 p.m.

Volatility Review: A look back at the week from a volatility perspective

  • VIX Cash: 12.3
  • VVIX: 91
  • VIX Futures are about 2.5 handle premium between cash & Jan futures.
  • VIX Options: 845K contracts on Tuesday lighter volume the rest of the week. Total 7.79m (5.49m Calls, 2.30m Puts)
  • Oil: Crude Vol continues to be crushed with OIV/OVX at 30.

Volatility Voicemail: Question and answer time

#QuestionOfTheWeek: Financial advisors represent the last options frontier. What level of options knowledge do you expect from your advisor?

  • None - I'll do it myself
  • Level 1: Buy Puts/Calls
  • Level 2: Income & Vol
  • Level 3:Option Specialist
  • Question from Hitman - Is the crab priced in yet? What about black swan events? Any options indicators shooing one of those may be on the horizon?
  • Question from Vegan - You mention the Fed with regards to equities. Should the Fed really care about what the market is doing?

Crystal Ball: In which the hosts guess the close of next week's VIX

Last Week:

  • Mark L. - 12.25
  • Mark S. - 11.5
  • Russell - 13.5

This Week:

  • Mark L. - 11.75
  • Andrew - 12.55
  • Russell - 13