Jun 30, 2014
Advisors Option 20: Volatility and Options
In this episode, Mark and Randy are joined by Joe Cusick, Vice President of Wealth and Asset Management at MoneyBlock.
Options 101: “Low VIX” is all over the financial media these days. Which makes it an excellent time to review the relationship between volatility & options. Haven’t discussed volatility on the program since Feb 2013 and the VIX products since October 2013 so we’ll review the following discussion topics:
- What is implied volatility?
- Difference between realized and implied volatility?
- How does high and low implied volatility impact options pricing?
- If you trade options for your clients do you want high or low volatility?
- What does it mean to have a “low VIX”? Is this level of implied volatility actually low?
- Should advisors use VIX options to hedge their client’s portfolios?
The Buzz: Credit unions help advisers expand use of options:
Listener Mail: Listener questions and comments
- Question from Charlie Durant - love the advisors show. Can you guys recommend a good tool or platform that will help me roll covered calls on my spy and individual equity positions more effectively? Right now I’m pretty much running a spreadsheet for my clients and then manually trading in and out of each position. Seems like there should be a better or easier way.
- Question from Firestar - can i use VIX options in my IRA accounts or are futures options banned due to leverage?