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

Brent Kochuba of @spotgamma starts with an anomaly from yesterday: the market went up and the VIX went up with it, which is not supposed to happen. He uses it to walk one of the most useful and least understood mechanics in the vol market, riding the skew. Because the VIX measures one month at the money options, a rally usually slides those measured strikes into lower implied vol, so the VIX drifts down on green days and up on red ones almost mechanically, whatever fear is actually doing. 📊 tastylive: https://www.tastylive.com/ 📰 Get Tom's pre-market analysis every morning: https://www.tastylive.com/newsletters 📘 FREE Options Strategy Guide: https://tinyurl.com/bp9ms763 📱 Follow tastylive on X: https://x.com/tastyliveshow Chapters 00:00 A big realized vol expansion 00:30 The two calls from last week 01:52 Riding the skew, explained 02:58 Why the VIX tracks the market 03:42 Check fixed strike vol instead 05:00 Contracting vol is healthy here 05:31 The Nasdaq's diversification problem 07:20 Dispersion is bubbling back up 08:54 The finisher move signal 10:17 Oil and rates have to stay down 12:10 A wall of passive inflows 13:16 Reading the term structure 16:45 The Micron earnings vol 19:26 Why he discounts the JP Morgan trade 21:26 The Captain Condor flow #tastylive #spotgamma #vix #volatility #fixedstrikevol #skew #dispersion #nasdaq #optionstrading #stockmarket tastylive is a real financial network, producing hours of live programming every day. Follow along as our experts navigate the markets, provide actionable trading insights, and teach you how to trade. With over 120 original segments, and over 25 personalities, we'll help you take your trading to the next level, whether you are new to trading or a seasoned veteran. tastylive content is created, produced, and provided solely by tastylive, Inc. ("tastylive") and is for informational and educational purposes only. It is not, nor is it intended to be, trading or investment advice or a recommendation that any security, futures contract, digital asset, other product, transaction, or investment strategy is suitable for any person. Trading securities, futures products, and digital assets involve risk and may result in a loss greater than the original amount invested. Investment information provided may not be appropriate for all investors and is provided without respect to individual investor financial sophistication, financial situation, investing time horizon or risk tolerance. Options, futures, and futures options are not suitable for all investors. Prior to trading securities, options, futures, or futures options, please read all applicable risk disclosures, including, but not limited to, the Characteristics and Risks of Standardized Options Disclosure and the Futures and Exchange Traded Options Risk Disclosure Statement found at https://tastytrade.com/disclosures/. Past performance is not indicative of future results. Performance is not presented net of all commissions, fees, and expenses. Multi-leg option strategies incur higher transaction costs than single leg trades as they involve multiple commission charges. Examples provided are for illustrative, informational, and educational purposes only and are not intended to be reflective of results you can expect to achieve. Supporting documentation for any claims, including claims made on behalf of options programs), comparisons, statistics, or other technical data, if applicable, will be supplied upon request. tastylive, through its content, financial programming or otherwise, does not provide investment or financial advice or make investment recommendations. tastylive is not a licensed financial adviser, registered investment adviser, or a registered broker-dealer.