How to Play the Vix

Your next video will start in

Recommended Videos

  • Info

  • Comments


Oct. 14 (Bloomberg) -- On today's "Options Update," Trevor Mottl, head of macro & derivative strategy at Susquehanna discusses his options play for the VIX on Bloomberg Television's "Market Makers." (Source: Bloomberg)

It is time for bloomberg to go on the markets.

Scarlet fu has more.

Don't you think tom should ask martha out?

I'm waiting for the moment.

Today is the options update with the government entering its second week of showdown.

Trevor -- you are not looking for increased market volatility here?

No, we are looking for the opposite.

And we are recommending that investors consider the december 16 strike puts on the vix.

This will benefit the volatility going down into december.

We expect the government shutdown and the debt ceiling issue to be resolved between october 17 and november 1, and after that we expect the markets to rebound, but in a relatively balanced way.

Soap, you do not see the markets reaching a point -- so, you do not see the markets reaching a point of violent selloff before november 1? we may see an increase in volatility between now and then, but who is to say we will not see a resolution and then overnight the next few days -- rather than trying to time exactly when that will occur, we are recommending a strategy that is relatively low risk, that has some time to it, that last for december, and it puts you in a position to benefit when we get this resolved.

And we expect this to be resolved.

Why until december though?

Why not until early 2014? i think if you go to 2014, you are spending a lot of money on premium.

You are asking investors to buy option now let the here.

You want to find a balance point between november 22 -- the date where the extension has been discussed, and the end of the year.

The vix never went below 20 for the rest of the year in 2011. why do you believe two months later from today you leave it will be below 15? this market is much more stable than it was in 2011. we do not have a european debt crisis overhang.

We do not have china slowing as a major overhang.

What we have is dysfunction in washington which has existed for the last two years.

The underpinnings of the economy are quite robust compared to 2011. i think we see much quicker to virgins on the vix than we did back then.

Thank you though much.

The head of derivatives strategy at his company.

Not looking for a pickup in volatility, certainly not by

This text has been automatically generated. It may not be 100% accurate.


BTV Channel Finder


ZIP is required for U.S. locations

Bloomberg Television in   change