This Week in VIX Options and ETNs – 11/1/2013

Despite an FOMC announcement this past week the activity in VIX and volatility related trading was pretty tame this past week.  This appears to be the new status quo since the government shutdown came to a temporary end.   I spoke to one trader from the VIX pit last week who confided that he felt any rollercoaster activity in VIX is done for 2013.

The evidence that the markets are basically in a holding pattern for the rest of 2013 shows up in a few places.  The VIX of VIX (VVIX – 68.94) is under 70.00, VIX was up only slightly last week, and the ETNs that focus on long positions on the short end of the VIX curve were all flat for the week.  Looking out to 2014 the iPath S&P 500 VIX Mid Term Futures ETN (VXZ – 18.19) actually rose a bit for the week.

ETNs Options

 

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Russell Rhoads, CFA

CBOE Options Institute

Russell Rhoads, CFA, is a Senior Instructor with the Options Institute at the Chicago Board Options Exchange. He joined the Institute in 2008 after a career as an investment analyst and trader with a variety of firms including Highland Capital Management, Caldwell & Orkin Investment Counsel, TradeLink Securities and…

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