The Options Insider Radio Network cover image

The Options Insider Radio Network

Volatility Views 612: Fed Sends Vol Market Into A Frenzy

Dec 20, 2024
Mark Sebastian, an expert options trader known for his insights in volatility markets, joins Rich Excell, Director of the Derivatives and Trading Academy. They delve into the frenzy triggered by the Fed's recent decisions and its ripple effects on the volatility landscape. International influences like European elections and the political climate in the Eurozone also take center stage. Additionally, they analyze significant VIX trends and share intriguing predictions for upcoming market movements, offering valuable insights for traders navigating these turbulent times.
01:07:19

Podcast summary created with Snipd AI

Quick takeaways

  • The Fed's anticipated rate cut significantly influenced market volatility, leading to heightened anxiety and a spike in VIX levels above 25.
  • Economic indicators, particularly the PCE index results, triggered strong market reactions, showcasing traders' sensitivity to inflation data and Fed communications.

Deep dives

Volatility Trading Insights

The podcast delves into the recent fluctuations in the volatility trading market, emphasizing the events of Fed Week, where a 25 basis point rate cut was widely anticipated and followed by discussions concerning future cuts. This situation led to a significant drop in the S&P, with losses exceeding three percent in some cases, which, in turn, spiked the VIX to levels above 25. The discussion highlights the disconnect where VIX cash surged while Deese futures were rolling off at much lower levels, illustrating a heightened market anxiety amidst the changing economic landscape.

Get the Snipd
podcast app

Unlock the knowledge in podcasts with the podcast player of the future.
App store bannerPlay store banner

AI-powered
podcast player

Listen to all your favourite podcasts with AI-powered features

Discover
highlights

Listen to the best highlights from the podcasts you love and dive into the full episode

Save any
moment

Hear something you like? Tap your headphones to save it with AI-generated key takeaways

Share
& Export

Send highlights to Twitter, WhatsApp or export them to Notion, Readwise & more

AI-powered
podcast player

Listen to all your favourite podcasts with AI-powered features

Discover
highlights

Listen to the best highlights from the podcasts you love and dive into the full episode