Last night we talked with Jared Woodard of Condor Options on StockTwits TV.  Jared is the author of the newly published e-book, Options and the Volatility Risk Premium.  We discussed the rapid reversal in the VIX and corresponding spike in the Japanese VIX in light of the Japanese earthquake.  We explored the idea of the volatility risk premium and how investors and traders could take advantage of this phenomenon.  We closed our discussion on the costs and challenges of trying to hedge tail risk.  You can view the video in its entirety below:

Items mentioned in the above video:

A big reversal in the VIX.  (Bloomberg)

The spike in the Japanese VIX.  (Condor Options updated Economist)

Options and the Volatility Risk Premium.  (Condor Options)

The CBOE Skew Index.  (CBOE)

Another whack at the ‘Black Swan‘ hedge fund.  (Bloomberg)