Volatility Views 695: Fed Vol and the Return of Weekend Risk
Summary
Host Mark Longo reviews a volatile week marked by Fed rate hike concerns, which initially spiked VIX to 18.5 before equities rebounded and volatility dropped back to the mid-15s. The episode highlights a significant disconnect between VIX cash and futures, with the front-month contract trading at 18.15 despite spot levels near 15.40. Guest Russell provides a detailed breakdown of weekly option flows, noting heavy bullish activity in September contracts and unusual structures like time verticals. The discussion also covers the growing impact of algorithmic trading and AI on market dynamics, …
Topics discussed
Intro and network promotion
Show opening and host introduction
Personal updates and AI in hiring
AI in trading and algorithmic patterns
Fantasy football banter and market recap
Fed decision impact and VIX drop
VIX levels and SPX correlation
Bond market concerns and inflation risks
Crude oil market disruption analysis
VIX futures curve and contango structure
Trading strategy discussion on VIX futures
VIX options volume and put activity
Russell's weekly rundown: September trades
Russell's weekly rundown: Complex spreads
Discussion on 0DTE and daily expirations
Daily volume breakdown and specific strikes
Vol ETP landscape and secret trade results
Crystal Ball: VIX price predictions
Upcoming events and show outro
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