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Podcast: Volatility Views
Episode:

Volatility Views 102: What Is a VIX Covered Call

Category: Business
Duration: 00:40:22
Publish Date: 2014-03-10 15:05:02
Description:

Volatility Views 102: What Is a VIX Covered Call

 

Volatility Review: VIX jumped 14% on March 3 to nearly 16, with the tension in Ukraine, but on the following day fell 12%. Monday was the big day across the board for VIX, volumes trailed off the rest of the week.  May 18/Aug 20 straddle swap - paper sold Aug bought may 5k-6k times for $1.65. A good month for VIX Futures. CBOE February VIX also hit record heights. More "showshine boys" from Chris Cole.

 

Volatility Voicemail:

Question from Bryan Tong - When will we get VXST options? Soon?

Question from Enten - If I buy and write VIX calls against it, is it technically a covered calls? Will my broker recognize it as a covered position?

Question from Declan Smith, Dublin - Why do so many people buy VIX calls to hedge their long premium SPX-SPY positions? Do they not know that they are already long the implied volatility of the S&P - aka VIX? If anything they should be selling those calls or buying puts.

Question from Tim J. - What is the settlement process for VXST?

 

 

Crystal Ball: An outlook for VIX, RVX, and VIX ETPs.

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