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Brent Kochuba Says Nothing Has Been Cleared Yet

NowPress play to follow along0:00 / 23:42
Chapters14 segments · tap to seek
ticker lesson

Breakdown

0:00lesson

Market volatility and VIX dynamics

  • Volatility still coming due
  • Biggest VIX move since 1990
  • 15th biggest down move in VIX
  • V gets bid, markets crash
  • V gets smacked, markets rally
1:44lesson

Negative gamma and market instability

  • Negative gamma environment
  • Volatility expanding
  • Puts closed in market rally
  • 7,300 area as possible low
  • Potential rally into OPEX next week
3:29lesson

Crude oil and macroeconomic uncertainty

  • Crash in oil as risk clearing mechanism
  • Oil down is good for stocks
  • Rates jumping higher
  • Uncertainty into FOMC period
  • Equity rotation trade dying
5:09lesson

Rotation trade and sector performance

  • Rotation trade into lower rate names
  • Lower rate trade died on Thursday
  • Correlation spiked
  • Financials, biotech, energy down
  • Rotation trade unwinding
6:56lesson

Gamma positioning and market levels

  • Uncertainty shown by red negative gamma
  • Targeting 7,300 as potential low
  • Negative gamma slope dies at 7,300
  • Implied VIX under realized volatility
  • Volatility not cheap anymore
8:37lesson

Volatility dynamics and event-driven risks

  • Implied VIX under realized volatility
  • Options no longer cheap
  • Events like Nvidia earnings and FOMC
  • Uncertainty from rate jump
  • Volatility pricing on economic data
10:12lesson

Volatility surface and market reactions

  • Options got too cheap based on realized move
  • Volatility jumped on Thursday
  • Negative gamma and deleveraging
  • VIX had third biggest move since 1990
  • Volatility needs to be cleared
12:01lesson

Market dynamics and event-driven volatility

  • Volatility not cheap anymore
  • Events like Nvidia earnings and FOMC
  • Uncertainty from rate jump
  • Volatility pricing on economic data
  • Tricky dynamic for market stability
13:50lesson

Volatility surface and market reactions

  • Options got too cheap based on realized move
  • Volatility jumped on Thursday
  • Negative gamma and deleveraging
  • VIX had third biggest move since 1990
  • Volatility needs to be cleared
15:34lesson

Potential market stability and risk clearing events

  • Market stability needs one of three things
  • 7,700 with positive gamma
  • 7,300 with negative gamma dissipation
  • VIX spikes and traders step in
  • Thanksgiving window for rally
17:17lesson

Analogy to past market events and analogies

  • Analogy to Thanksgiving rally
  • Nvidia earnings and VIX expiration
  • Liquidity for anthropic and SpaceX
  • Potential for market rally
  • FOMC update after Thanksgiving
18:58lesson

Gamma positioning and market review

  • Review of gamma positioning for future use
  • Positive gamma at 7,700
  • Negative gamma at 7,300
  • Market selling at 7,300
  • Positioning helps navigate future moves
20:43lesson

Gamma dynamics and market behavior

  • Positive gamma at 7,700
  • Negative gamma at 7,300
  • Market selling at 7,300
  • Positioning helps navigate future moves
  • Gamma dissipates at 7,400
22:38lesson

Deleveraging and market stability

  • Deleveraging in the market
  • 1% draw down unlikely
  • 2% selling more likely
  • Volatility can spike back up
  • Gamma maps help flag bottoms

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