Volatility Views 293: The Great XIV Debate, Continued

Published: Feb. 12, 2018, 7:24 p.m.

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Volatility Review: The great inverse volatility ETP debate continues. Are they "Frankenproducts" that shouldn\'t exist? Or are they performing as advertised, but the investing public simply doesn\'t understand them? Maybe there\'s a third camp? VIX Cash: Spiked to 46.34 on Tues - Quite possibly the craziest week in VIX history.

Kevin\'s Weekly Rundown

  • VIX Options: ADV - 983k, VIX call/put: 2.8
  • Commodity Volatility
  • Bitcoin has been moving in lockstep with the market.

Volatility Voicemail: Volatility flash poll
XIV is headed to the graveyard. But, as of this writing, $SVXY is still trading. Do you still have confidence in this product? Quite simply - do you think $SVXY will still be trading at the end of the year (12/31/18)?

  • Yes
  • No
  • I\'m hiding under the bed

Options question of the week:

VIX is moving like crazy today day. It\'s already blown past 23 and is threatening 35. So let\'s dial up our $VIX threshold for extra #ZombieApocalypse fun. You buying or selling these levels? Quite Simply: Where will $VIX close on Friday?

  • Crazy Town: 30-35
  • ZombieApocalypse: >35
  • Crazy: 25-30
  • Mildly Crazy: <25

Listener questions and comments:

  • Question from Chris T - The most I can lose buying SVXY is the price I pay, correct? So can I buy it around 10 and treat it like a lotto ticket call?
  • Comment from Scott Somer - Another day another day with a very large sell off heading into the start of the Option Block and an up move in the S&P Futures during the "Trading Block" #OptionInsiderRadio #OptionBlock #GreasyMeatball #RockLobster
  • Question from Lamina - $VIX cash is trading above the futures right now. How is that possible? Isn\'t the cash value derived from the futures?
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