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Volatility Views 44:\\xa0 Listener Mail\\xa0 Extravaganza
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Volatility Review: Vol is down and SPX is up. Even the\\xa0 news of the new iPad wasn\'t enough to boost the market. Don opines on Apple.\\xa0 Nasdaq vol still flat-lined.\\xa0 Euro vol -- the\\xa0 1-month and 3-month March contracts expire\\xa0 soon.\\xa0

Listener Mail: Nasdaq VolContracts, TVIX, the nature of\\xa0 VolContracts, and avoiding the VIX.
1. Will the new Nasdaq VolContracts be\\xa0 exclusive to the Nasdaq, like the Euro and CME, or multi-listed?\\xa0
2.\\xa0 What\'s your take on the ongoing TVIX drama? Cause? Was it shady? Is TVIX\\xa0 done?\\xa0
3. I\'m new to the show, so I apologize if you guys have\\xa0 discussed this in earlier episodes, but I\'m intrigued by the concept of\\xa0 VolContracts and how they work. Would the new Nasdaq products be normal\\xa0 futures and options in the truest sense? In other words, do normal strategies\\xa0 such as verticals, time spreads, etc. apply in VolContracts products? Or, do I\\xa0 need to relearn my trading fundamentals and apply some new concepts to fully\\xa0 capitalize on these instruments?
4. I hear you guys talking about the\\xa0 problems with using VIX as a proxy for SPX volatility: Poor settlement, too\\xa0 many masters affecting the VIX, etc. So instead of VIX, I\'m thinking of\\xa0 getting a pure realized vol position using delta-neutral ATM straddles in SPY.\\xa0 The contract size is smaller, so it\'s easier for me to trade. As long as I\\xa0 make my hedges and adjustments accurately, this should be a vastly superior\\xa0 proxy for the true S&P volatility. Am I correct or am I nuts?\\xa0

Crystal Ball: Non-farms may be a non-event. Load up on VIX downside.\\xa0 Hopefully the Nasdaq vol can break out of this flat line and the other shoe will drop. Otherwise it\'s difficult to\\xa0 make any predictions.