Market Volatility: Trading Cheap Volatility Underlyings

tastytrade is joined by "Alex the Kid Trader" for a discussion on VIX in Low IV (implied volatility) markets. Alex breaks down the definitions of "contango" and "backwardation" in volatility /VX futures and what it means to traders who are holding short and long term positions in volatility products like VXX, VIX and UVXY. Find out how Alex, Tom and Tony select their volatility strategies (in both options and futures) based on the cost of carry and "drag" in these products and get Tom, Tony and Alex's outlook on how long vol can stay cheap. ======== tastytrade.com ======== Hosted by Tom Sosnoff and Tony Battista, tastytrade is a real financial network with 8 hours of live programming five days a week during market hours. From pop culture to advanced investment strategies, tastytrade has a broad spectrum of content for viewers of all kinds! Tune in and learn how to trade options successfully and make the most of your investments! Watch tastytrade LIVE daily Monday-Friday 7am-3:30pmCT: http://ow.ly/EbzUU Subscribe to our YouTube channel: https://www.youtube.com/user/tastytrade1?sub_confirmation=1 Follow tastytrade: Twitter: https://twitter.com/tastytrade Facebook: https://www.facebook.com/tastytrade LinkedIn: http://www.linkedin.com/company/tastytrade Instagram: http://instagram.com/tastytrade Pinterest: http://www.pinterest.com/tastytrade/

Comments

1. Good job outta you kid!
2. Good evening, generally everybody can think that now, for istance every time that the volatility is very low is a good trade to buy volatility or build some strategy that involve the purchase of fronth month and sell back month future Vix. I've never seen a situation like this with very low volatility and Vix future structure in backwardation, I think that low volatility can continue for other months.
3. Awesome to see Alex grow up over the last few years