Volatility Views 262: Crazy Nuke Vol Plus, VIX vs. VXN

Published: July 10, 2017, 4:46 p.m.

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

  • The VIX juice is loose
  • OCC cleared futures volume in June reached 13,194,530 contracts, a 16% increase from June 2016.
  • One of the most popular - and controversial - trades in the stock market (XIV) is showing no signs of slowing down. MRA attributes the spiking popularity to the participation of mom and pop investors.

Russell's Weekly Rundown:

Options question of the week:: Blue Apron $APRN is down over 10% from its #IPO price. Assuming #Options were listed, what trade would you make?

  • Buy Dec 10 Call for $1
  • Buy Dec 9 Put for $1
  • Sell Dec 10 Call for $1
  • Not Touching $APRN

Listener questions and comments

  • Question from Avery Thompkins - Heard you guys debating theoretical low for XIV. I am down with 5. That makes sense. What about the other side? How high can it get? Is 1,000 in the conversation?
  • Comment from Safari Dad - A day without volatility is a day without sunshine
  • Question from Vtrader168 - While VIX is at historical low, but Nov VIX future still stay high at 16.20. Nov VIX was ~15.7 on 5/1 and 5/2. So the term structure is relatively steep. Any implication?

Crystal Ball: Your prognostication headquarters

This week:

  • Mark L. - 9.85
  • Mark S. - 10.05
  • Russell - 10.23