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Brent Kochuba Explains Why the VIX Went Up on a Green Day

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Chapters17 segments · tap to seek
ticker lesson

Breakdown

0:00lesson

Options market overview and volatility trends

  • Options market saw big moves yesterday
  • Market is more tame today
  • S&P and VIX moved up yesterday
  • Volatility contracted today
  • Market not pricing in big moves
1:47lesson

Understanding VIX and volatility dynamics

  • VIX rises and drops based on skew
  • VIX measures one-month S&P options
  • Market rally lowers VIX
  • Market decline raises VIX
  • Check fixed strike V for deeper insights
3:42lesson

Analyzing fixed strike volatility and market trends

  • Fixed strike volatility up day over day
  • Market S&P up with dips
  • Volatility contracting today
  • Stability is good for the market
  • Sell options for positive gamma
5:21lesson

Tech sector performance and market divergence

  • NDX up more than S&P
  • S&P diversification problem
  • AI sector driving gains
  • Tech options rerating
  • NDX volatility outpaces S&P
7:10lesson

Dispersion index and tech stock volatility

  • Dispersion index bounced
  • Tech stocks blew up
  • S&P didn't follow
  • NASDAQ dropped 8% from July to August
  • Core 1M correlation index dropped
8:56Meta· ticker

Meta — VSS rich, potential for call spreads

  • Meta VSS got fairly rich
  • Call spreads and tech can still work
  • Sandis up huge today
  • Micron earnings on 30th
  • Quarter end and midterm catalysts
10:33lesson

IV rank chart and market skew

  • IV rank high on right, low on left
  • Calls rich relative to puts
  • NASDAQ median stock at top 25
  • High call skew signals rally end
  • Dispersion index synced with high IV
12:13lesson

Macro factors and market support

  • Oil needs to stay down
  • Rates coming off slightly
  • Leverage ETFs added $20 billion
  • Passive inflows from Trump accounts
  • Supportive for market rally
13:51lesson

Term structure and put skew analysis

  • Put skew higher, call skew lower
  • Put wing could come down with resolution
  • Midterms and earnings hedge
  • Call skew could reach May levels
  • Oil prices and stock strength matter
15:26lesson

Forward implied volatility and event analysis

  • Forward implied V for micron earnings
  • IV between expirations shows market focus
  • CPI and election as key events
  • Unemployment rate as major factor
  • NDX structure different due to micron earnings
17:09lesson

Tech complex and earnings impact

  • Micron earnings on 30th
  • Tech complex watching data point
  • Nvidia impacts index volatility
  • Micron earnings importance
  • Performance chasing into quarter
18:47lesson

JP Morgan collar discussion and risk management

  • JP Morgan positions in ES futures
  • 20,000 lot positions expiring
  • Positive gamma added to market
  • Position size small now
  • Less focus on JP Morgan
20:24lesson

Captain Condor and risk management

  • Captain Condor flow similar to previous
  • Big 10,000 lot positions
  • Market moved to strike level
  • Rolling strikes up increases risk
  • Terrible risk management example
22:10lesson

Rolling strikes and defined risk

  • Rolling strikes up increases risk
  • Market moves through both strikes
  • Double risk position
  • Potential for big loss
  • Avoid doubling down on losses
23:53lesson

Call spreads and zero DDT condors

  • Call spreads and condors gone
  • 10,000 lot positions likely gone
  • Risk management example
  • Potential for market to show up again
  • Avoid doubling down on losses
25:29lesson

Identifying undervalued tech stocks

  • Look for lower implied volatility
  • SpaceX and Tesla as potential
  • Meta, AMD, Intel may pull back
  • Intel and AVGO have lower IV
  • Focus on second-tier names
27:09lesson

Put flow and market sentiment

  • Put flow at 89, people sold puts
  • Signal of market stability
  • Higher stocks ahead
  • Bulls have interesting setups
  • Market sentiment bullish

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