The tastylive network Confirm and Send - November 10, 2025
Nov 10, 2025
The market opens on a high note with significant gains across major indexes and a Bitcoin rebound after a dip. The hosts dive into carrying costs, explaining how they influence futures, options, and assets. They discuss tail risk protection, emphasizing position sizing as a key strategy. When it comes to option spreads, wider strategies are favored for better profitability. Additionally, they debate the reliability of 50/200-day moving averages, highlighting their contextual relevance but questioning their trading value.
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Strong Opening Rally With Volatility Drop
- The market opened strongly with S&P, NASDAQ, and Russell up around 1–1.5% while VIX fell below 19, confirming the move.
- Bitcoin and Ethereum rebounded sharply after recent dips, showing crypto participation in the market rally.
Carry Is Built Into Futures Pricing
- Carrying cost reflects the cost to hold a futures position and includes interest rates baked into pricing.
- The futures curve embeds that carry cost and explains price differences across maturities.
Carrying Costs Pervade All Assets
- Carrying costs exist across physical and financial products, from stored gold to real estate taxes and insurance.
- In liquid markets these costs are baked into observable prices and option values, so you rarely see them explicitly.