09 Feb 2010

Point: Counter Point Ahead of BIDU

by: Adam Warner at 6:25AM comments

BIDU, China's Only Search Engine That Matters, reports tonight.

BIDU's been quite interesting this cycle, though most of it was just a one-off reaction to the news that Google wanted no part of China any more.

If you include the move in BIDU historical volatility calculations, it's still a 50+ vol. If you take it out, BIDU looks more like a mid 40's volatility name. Febs carry a high 50's volatility into the number, though that's a little misleading in that small dollar moves in an option...

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08 Feb 2010

Up In (Expensive) Smoke

by: Adam Warner at 5:22PM comments

I rarely flip on CNBC these days, so as such miss classic moments like this one where they highlight some new Bong for the Rich called the Volcano Vaporizer. Hat tip Evan of Hedge->Accordingly, aka SellPuts.

It looks like, I don't know, if a Roomba married one of those glass laser balls from the 80's.

All I can say is, CNBC clearly knows the key to halting that nasty ratings slide remains in running more stories on pot and/or porn.

But hey, deep thought. Would I "get" Power Lunch if I...

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08 Feb 2010

Ending the Kardashian Kurse

by: Adam Warner at 2:20PM comments

Having a Kardashian on your arm has become the new rabbit's foot. Or something like that. Worked for Lamar Odom, and now Reggie Bush. Rumor has it crazed Cubs fan are setting up Kourtney with Carlos Zambrano as we speak.

Well, we've been big supporters of NFL coaches actually heeding the numbers and getting more aggressive on 4th down and using the onsides kick more often. Could it get better than seeing a coach willing to go that route in the Super Bowl?

Will it now go mainstream? If it...

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08 Feb 2010

Volatility of the Volatility

by: Adam Warner at 10:08AM comments

I realized we can in fact chart "Volatility of Volatility". Here's the 20 Day HV for the VIX over the last 6 month's. And it has indeed more than doubled over the past few weeks from 60 to 130ish.

It's a little trickier to measure implied volatility of VIX options (not to mention confusing as it gets). VIX options price off their corresponding future, but I can't find a system that picks them up the stats correctly. They all base their VIX volatility calculation off the "spot" VIX. When spot...

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07 Feb 2010

Back To the VIX Futures

by: Adam Warner at 11:16PM comments

With the volatility of the VIX itself exploding the last few days, and VXX and VIX futures somewhat lagging, what better time to refresh our knowledge of how these pups work.

By "volatility of the VIX", I mean the degree to which the VIX itself is moving. It rallied 20% on Thursday, than lifted another 10% Friday before closing flattish. That's volatility of volatility for you.

VIX futures "bet" on a snapshot of where the VIX will close on the day they expire. That expiration is 30 days before...

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