I was invited to join Bob Lang (options trading mentor at http://explosiveoptions.net, contributor to http://thestreet.com, and one of Jim Cramer's go-to technical experts on Mad Money) in a webinar yesterday. The recorded video has been posted online for anyone interested.
We had a great conversation, covering a wide variety of topics in 80 minutes. To help you find topics of interest, I've outlined our discussion along with approximate minute marks.
- Show intro (0:00)
- Bob's current market analysis (1:50)
- Into of Jay (10:15)
- Overview of Volatility (13:25)
- Role of actual market volatility in pricing of forward looking volatility (VIX) (17:18)
- What happens during recent, brief VIX spikes which quickly revert; impact of QE (24:00)
- Common misconceptions of VXX (30:28)
- Reasons for large blocks of VIX calls (36:15)
- Reason why actual volatility may be higher than implied volatility (39:40)
- Reasons for a rising VIX while the market is rising (41.45)
- Likelihood of seeing a VIX in the 90s again (45:00)
- Reasons for current low VIX regime (47:50)
- Recent pattern of buying XIV on dips and likelihood of continuation of this pattern (51:05)
- Letting data guide trading decisions (53:25)
- XIV technical analysis -- importance of 200-day moving average (54:40)
- XIV indicators (57:30)
- Possibility of rally in XIV in today's market & levels to watch for Friday (1:00:10)
- Do VIX levels have influence on whether equities go up or down (1:02:00)
- Preparing for Black Swan events (1:03:45)
- Current decision making for trading XIV in market Friday (1:08:00)
- Signals for start of new rally in XIV (1:10:30)
- Why Thursday's move in XIV was an indicator that VIX was overbid (1:11:45)
- Tour of free resources at http://tradingvolatility.net (1:14:00)
If you are interested in learning more about trading options from a technical expert, check out Bob's website at http://explosiveoptions.net/ and follow him on Twitter at @aztecs99.
