From the first futures in 1848 to today’s zero-day options, Cem Karsan, Mandy Xu, and Ed Tom chart how derivatives have moved from the market’s periphery to its center of gravity. At the core is Cboe’s new VIX decomposition tool, which disentangles moves driven by downside hedging, upside speculation, and shifts in the volatility surface. Through episodes like the yuan shock, Volmageddon, and 2024’s “Liberation Day,” they show how positioning can amplify or mute risk, and why vol sometimes rises into rallies. This is a guided tour of volatility’s inner workings, and how reading its structure can reveal the market’s next move before price does.

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50 YEARS OF TREND FOLLOWING BOOK AND BEHIND-THE-SCENES VIDEO FOR ACCREDITED INVESTORS - CLICK HERE

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Episode TimeStamps:

59:42 - Introduction to the series

02:21 - Where did options come from and where are we going?

10:20 - The purpose and mechanisms of the VIX decomposition tool

18:55 - The history of the VIX index

23:20 - The beginning of a volmageddon

26:24 - A comparison between 2 recent volatility events (August 2024 and April 2025)

35:03 - Key indicators for understanding risk in markets

42:23 - The current state of 0DTE options

50:29 - The optimal way of using VIX and hedge options

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PLUS: Whenever you're ready... here are 3 ways I can help you in your investment Journey:

1. eBooks that cover key topics that you need to know about

In my eBooks, I put together some key discoveries and things I have learnt during the more than 3 decades I have worked in the Trend Following industry, which I hope you will find useful. Click Here

2. Daily Trend Barometer and Market Score

One of the things I’m really proud of, is the fact that I have managed to published the Trend Barometer and Market Score each day for more than a decade...as these tools are really good at describing the environment for trend following managers as well as giving insights into the general positioning of a trend following strategy! Click Here

3. Other Resources that can help you

And if you are hungry for more useful resources from the trend following world...check out some precious resources that I have found over the years to be really valuable. Click Here

Disclaimer

The Call-In Show 3.8.2017