tasty Extras

Volatility Discussion

tasty Extras

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The boys are back in studio to reflect on the wildest week for the stock market in the last two years. Pete, Tony, Ryan, and Frank get together to discuss volatility in the market for stocks, what it has done, and where it might be going.

Check out the conversation above that is centered around the following questions:

S&P 500 down 8% in the last week...VIX over 50 for the first time since 2015...Bitcoin down 50% on the year...This is the first real wake-up call for many millennial investors. What advice would you give them?

Selling volatility has become a popular trade. ETFs and ETNs exist that allow people to passively invest in short implied volatility futures (/VX). Can any part of this bid in volatility be attributed to short volatility traders simply buying back their shorts?

Prior to its earnings this morning, CBOE was down 20% in the same time the broad market was only down 8% this week. A lot of people attributing the selling in CBOE to the frustration with VIX-associated ETFs. Should the CBOE be punished for having a volatility index?