Volatility Views 697: Nothing Makes Sense

Weak jobs data sends stocks higher, VIX futures remain stubbornly elevated above spot, and volatility products deliver some puzzling results. Mark Longo, Dr. Russell Rhoads and Jim Carroll examine the conflicting signals driving the equity and volatility markets.

The panel breaks down VIX futures term structure, persistent contango and the risks surrounding a narrow, tech-led rally. They also debate the prospect of perpetual VIX futures and how funding rates and arbitrage could affect existing futures, options and volatility trading strategies.

Plus, Russell's Weekly Rundown explores unusual VIX options activity, including far out-of-the-money calls and deep in-the-money put spreads. The crew examines a sizable October-to-November call spread roll, compares the volatility ETP landscape across VXX, UVXY, UVIX, SVIX, SVXY and SVOL, and discusses a brokerage restriction that interrupts Russell's weekend volatility trade.

Then it's time for another fiercely contested round of VIX forecasts in the Crystal Ball.