There are times when Tom receives an email and forwards it to our Research Team. Jared Vacanti combed through these questions with ones he thought would be of interest and ones which might be too tough for Tom. Jared came on with one purpose. Try and stump Tom!
The first question to Tom was from Scott in Bellevue, Washington: Does a high Put/Call ratio indicate an upcoming down move (or up move)? Tom answered that he thought the ratio had no indication of an upcoming move. Jared explained how it was a meaningless lagging indicator with many false positives which confirmed Tom was correct.
The second question posed to Tom was from Harry B. in Toronto, Canada: Are there times during the day that are better to trade than others? Tom replied “that the times that are best to trade are the times that best fit your schedule and to trade when you can.” Jared asserted that there are certain times of the day where the bid-ask on spreads were tighter. Jared showed the ATM Put volume in the SPY which showed that most people trade right on the open, after lunch and on the close.
The third question posed to Tom was from Sarah in NYC: Does the VIX spread mean revert? Is it at a high or low level right now? Tom answered yes, that since Volatility is mean reverting so is the VIX spread. Jared displayed a chart which showed Tom was right again. The VIX spread is driven by what is happening in the VIX contract.
The fourth question for Tom was from Frank in South Chicago, IL: Frank has added SKEW to his watchlist and asked, “Does VIX and SKEW have a high correlation?” Tom answered that he thought that they did not have a high correlation. Jared revealed that Tom was right again (much to Jared’s dismay).
The final question posed to Tom was from Brian in Tennessee: If summer months typically have less volume or less trading, does volatility follow the same patterns in these months (low volatility in summer months)? Or as Jared put it, “Is Volatility seasonal?” Tom’s final answer was that Volatility was random and did not follow volume patterns. Jared reluctantly agreed.
Watch this new fun segment of “Too Tough For Tom” with Tom Sosnoff, Tony Battista and Jared from our Research Team for a lighter segment about questions you may have and see if they can stump “The Creator”, aka Tom.
This video and its content are provided solely by tastylive, Inc. (“tastylive”) and are for informational and educational purposes only. tastylive was previously known as tastytrade, Inc. (“tastytrade”). This video and its content were created prior to the legal name change of tastylive. As a result, this video may reference tastytrade, its prior legal name.
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. tastylive, through its content, financial programming or otherwise, does not provide investment or financial advice or make investment recommendations. 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. tastylive is not in the business of transacting securities trades, nor does it direct client commodity accounts or give commodity trading advice tailored to any particular client’s situation or investment objectives. 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 is not a licensed financial adviser, registered investment adviser, or a registered broker-dealer. Options, futures, and futures options are not suitable for all investors. Prior to trading securities, options, futures, or futures options, please read the 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 found on tastytrade.com/disclosures.
tastytrade, Inc. ("tastytrade”) is a registered broker-dealer and member of FINRA, NFA, and SIPC. tastytrade was previously known as tastyworks, Inc. (“tastyworks”). tastytrade offers self-directed brokerage accounts to its customers. tastytrade does not give financial or trading advice, nor does it make investment recommendations. You alone are responsible for making your investment and trading decisions and for evaluating the merits and risks associated with the use of tastytrade’s systems, services or products. tastytrade is a wholly-owned subsidiary of tastylive, Inc.
tastytrade has entered into a Marketing Agreement with tastylive (“Marketing Agent”) whereby tastytrade pays compensation to Marketing Agent to recommend tastytrade’s brokerage services. The existence of this Marketing Agreement should not be deemed as an endorsement or recommendation of Marketing Agent by tastytrade. tastytrade and Marketing Agent are separate entities with their own products and services. tastylive is the parent company of tastytrade.
tastycrypto is provided solely by tasty Software Solutions, LLC. tasty Software Solutions, LLC is a separate but affiliate company of tastylive, Inc. Neither tastylive nor any of its affiliates are responsible for the products or services provided by tasty Software Solutions, LLC. Cryptocurrency trading is not suitable for all investors due to the number of risks involved. The value of any cryptocurrency, including digital assets pegged to fiat currency, commodities, or any other asset, may go to zero.
© copyright 2013 - 2024 tastylive, Inc. All Rights Reserved. Applicable portions of the Terms of Use on tastylive.com apply. Reproduction, adaptation, distribution, public display, exhibition for profit, or storage in any electronic storage media in whole or in part is prohibited under penalty of law, provided that you may download tastylive’s podcasts as necessary to view for personal use. tastylive was previously known as tastytrade, Inc. tastylive is a trademark/servicemark owned by tastylive, Inc.