Volatility Review: A look back at the week from a volatility perspective.

The Numbers:

• VIX Cash - 9.58, VVIX - 76
• VXN - 14.36, CBOE Skew Index - 130
• VIX Options - ADV: 671k, Total 7.32m (5.82m Calls, 1.49m Puts)

Russell's Weekly Rundown:

Volatility Flash Poll: Someone bought 235k $VIX Aug 30/35 Call Spreads for a whopping $.05. Theory time - Why would someone buy this spread?

• "Hedge" Short OTC Vol
• Bullish Volatility Spec
• Someone had $1.2M to burn
• "Hedge" Equity Portfolio

Volatility Voicemail: Listener questions and comments

• Question from FContangotrader: When you buy put calendar in $VXX and took delivery of stock becomes synthetic call, great way to gain cheap delta while you short.

Options question of the week: Earnings Season is back! $MSFT & $EBAY are up next. $MSFT ATM Straddle = 3.5%. $EBAY ATM Straddle = 7% Which trade would you make?

• 41% - Buy $MSFT Straddle 3.5%
• 28% - Buy $EBAY Straddle 7%
• 21% - Sell $MSFT Straddle 3.5%
• 10% - Sell $EBAY Straddle 7%

More questions and comments:

• Question from Avery Thompkins & HSchwartz - Russell any progress on creating a VIX calc spreadsheet?
• Question from Ballen - What is your take on this article? Time to Stop Calling the VIX the "Fear Index"
• Question from MMouse - Check out this chart. Short volatility for the win! Why would you buy VIX?

Crystal Ball: Wild and reckless prognostication

Last week:

• Mark L. - 10.25
• Ghost of Russell - 13.74
• Andrew - 9.99
• Guest - 9.75

This week:

• Mark L. - 10.25
• Russell - 9.76
• Mark S. - 10.04