One Number Tells You When It Gets Ugly.

Mike Butler has watched the ratio between the volatility index and the volatility of that index for years, by eye, and quoted its typical range on air from memory. The desk backtested it properly and his figure landed within a fraction of theirs. The study looks at what that ratio does to premium selling results, why these two measures move together when a volatility index and its underlying normally do not, and why it avoids a distortion that affects the common relative volatility gauges. Study results are historical, not predictive. 📊 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 0:00 A very deep cut intro 0:54 What the ratio measures 2:12 Where it sits right now 2:55 Why these two move together 3:31 A clone of a clone 4:20 Losing signal in the noise 5:02 The correlation between them 5:38 Where the ratio usually lands 6:24 What he saw by eye 7:33 Testing it as a signal 8:11 What the bands actually show 8:45 Why he prefers the tail measure 9:21 Why the ratio moves inversely 10:07 Another lens on the same thing 10:44 The honest takeaway here #tastylive #vvix #vix #volatility #ivrank #optionsresearch #premiumselling #marketmeasures #optionseducation #trading 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.