Markets Grind Higher and Crash Lower, and Here's the Proof

Kevin Davitt, Head of Index Options Content at Nasdaq, puts numbers on something traders feel but rarely measure. This year the Nasdaq 100 had more up days than down days, yet the up moves were smaller, which is the arithmetic behind markets grinding higher and crashing lower. On a typical day it outperforms by about 45 basis points and underperforms by 54, but last Thursday it lagged by roughly 200, the biggest single session since April 2020. 📊 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 Defined risk spreads in this tape 00:40 The biggest session since April 2020 01:20 How to frame relative volatility 02:00 The average daily outperformance 02:40 Last Thursday was four times that 03:20 More up days, but smaller ones 04:10 Why one index costs 50% more 05:00 Comparing the volatility indexes 05:50 Where that premium peaked this year 06:40 Expressing a view with a butterfly #tastylive #nasdaq #kevindavitt #ndx #indexoptions #volatility #definedrisk #butterfly #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.