Volatility Views 355: Mexican SPIKES and Binary TSLA Volatility
VOLATILITY VIEWPOINT
Guests:\xa0 Jimmy Heinz - \xa0Equity Volatility Trader, Gelber Group & Brendan Carter, \xa0Equity Volatility Trader, Gelber Group
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VOLATILITY REVIEW
Trade war - Trump decided China wasn\u2019t enough and picked a new trade war with Mexico
SPIKES - 18.5, up 2-points from last show.
VIX Cash - 18.5, 2.25-points higher than last week.
VVIX - 94.5, 2.5-points higher than last show
VIX Options - ADV: 708K
VXX - 30.5, 2.5-points higher than last week
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VOLATILITY VOICEMAIL
Question from Cap Wulf - Looks like the dark days of VIX are finally over? Thoughts on the outcome? Do you agree with the judges decision?
Question from Michael Paige - I\u2019ve heard your discussions about inverse volatility products and how we probably won\u2019t see another one anytime soon. I find myself wondering how you could even construct one of those products int he modern era that would pass regulatory muster? All of them have an embedded function that they can effectively blow out at anytime. How can any provider offer this product without also having to carry so much upside protection that it becomes far too expensive to list. But I don\u2019t see regulators allowing anything past them that has an embedded \u201cacceleration event\u201d in their prospectus again.
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CRYSTAL BALL