Volatility Views 642: Nonfarms, Tariffs and Earnings...Oh My!!!

In this episode, Mark Longo, Russell Rhoads (Kelley School of Business - Indiana University), and Matt Amberson (Orats) analyze the significant surge in VIX, evidenced by the current VIX cash at 21 and the heavy trading volume exceeding one million contracts. They discuss how this translates to increased option activity, with substantial trades noted in August and September futures. Matt and Russell elaborate on the week's significant options trades and their implications, including a deep dive into earnings volatility with Matt noting an exceptionally hot earnings season, seeing over 50% returns on straddles. The episode also features insights into the vol ETP landscape, highlighting products like UVXY, SVXY, and VXX and their respective trading activities. Lastly, the hosts provide predictions for the next week, discussing potential market moves in the context of current volatility.

 

01:05 Welcome to Volatility Views

01:55 Market Overview and Recent Additions

05:28 Volatility Review

14:19 Earnings Volatility Report

21:14 Volatility Surface Analysis

30:38 Weekly Options Analysis

33:27 Analyzing Recent VIX Trades

34:41 Questionable Trade Strategies

36:06 VIX Options Activity Breakdown

43:24 Inverse Volatility and Liquidity Challenges

46:00 Volatility ETPs and Trading Strategies

50:23 Predicting VIX Movements

54:14 Conclusion and Upcoming Events