Options Action: Volatility on the rise
December 17, 2025 • 3m 30s
? (Host)
00:00.270
to
break
it
down
because
mike
we've
got
obviously
got
a
couple
holidays
we
got
a
half
day
and
dare
i
mention
i
said
it
the
theta
bleed
yeah
Mike Khouw (Chief Strategist)
00:09.670
well
that's
actually
a
great
point
so
you
know
when
you
take
a
look
at
the
vix
what
is
it
it
is
basically
a
thirty
day
look
ahead
on
the
implied
volatility
for
the
S
and
P
five
hundred
but
you
know
one
of
the
things
that
you
just
pointed
out
is
that
over
the
course
of
the
next
Mike Khouw (Chief Strategist)
00:23.870
thirty
days
we've
got
a
couple
holidays
we've
got
a
half
day
next
week
a
full
day
off
and
then
we
have
a
full
day
off
the
subsequent
week
the
bond
markets
actually
have
a
little
bit
more
time
off
than
the
equity
markets
do
and
if
you
adjust
for
those
things
i
think
that
probably
Mike Khouw (Chief Strategist)
00:37.680
a
truer
measure
measure
of
where
the
volatility
the
index
is
right
now
is
probably
eighteen
and
a
half
to
nineteen
and
i
would
add
to
that
that
if
you
look
out
to
the
options
that
expire
at
the
end
of
january
one
of
the
observations
you
will
make
is
that
the
wings
that
is
the
Mike Khouw (Chief Strategist)
00:52.630
downside
out
of
the
money
puts
and
the
way
out
of
the
money
calls
have
gone
up
even
more
than
the
at
the
money
options
have
so
it
does
seem
like
options
prices
are
anticipating
some
more
choppiness
than
we've
probably
experienced
over
the
course
of
the
last
six
months
and
i
i
Mike Khouw (Chief Strategist)
01:09.710
think
that
part
of
that
stems
from
the
fact
that
we
have
seen
sort
of
a
roll
off
going
on
in
in
some
of
the
hardest
performing
sectors
year
to
date
yeah
? (Contributor/Panelist)
01:18.150
i
think
that's
right
mike
and
i
think
you
got
a
dynamic
where
if
you
look
back
to
where
we
were
last
year
the
best
of
the
best
of
the
holiday
santa
claus
rally
guy
you
like
that
term
right
yeah
ho
ho
ho
happened
really
up
through
thanksgiving
and
december
was
choppy
and
then
we
? (Contributor/Panelist)
01:31.550
came
into
january
and
there
was
some
dynamics
obviously
that
still
were
very
uncertain
what's
interesting
about
twenty
twenty
six
is
a
lot
of
people
actually
feel
policy
wise
we're
following
through
are
you
seeing
anything
further
out
there
mike
in
twenty
six
it
says
things
? (Contributor/Panelist)
01:43.030
really
calm
down
as
you
get
into
the
first
quarter
Mike Khouw (Chief Strategist)
01:46.550
calm
down
in
the
first
quarter
well
certainly
not
i
would
say
through
january
or
february
i
mean
right
now
i
would
say
that
you
know
it's
it's
kind
of
calm
at
the
surface
but
it's
those
wings
that
have
been
getting
bit
up
which
essentially
indicates
that
there
is
sort
of
this
Mike Khouw (Chief Strategist)
02:01.470
increased
alertness
if
you
will
that
something
big
could
be
coming
doesn't
mean
it
will
necessarily
and
you
know
in
general
i'm
i'm
a
bull
on
the
market
most
of
the
time
but
i
will
say
that
it
does
seem
like
there
is
some
gurgling
under
the
surface
as
if
some
of
that
holiday
Mike Khouw (Chief Strategist)
02:15.550
indigestion
is
showing
up
a
little
early
? (Host)
02:17.510
what
what
we
do
i
mentioned
it
mike
very
quickly
we
do
have
a
president
that's
going
to
make
an
announcement
tomorrow
night
about
we
don't
know
what
there's
reports
that
maybe
it
has
something
to
do
with
venezuela
that
would
seem
to
be
some
kind
of
a
coiled
spring
is
the
options
? (Host)
02:31.110
market
expressing
any
of
that
Mike Khouw (Chief Strategist)
02:33.470
yeah
well
i
i
think
that's
exactly
what
this
is
probably
indicative
of
those
types
of
sort
of
macroeconomic
uncertainties
are
exactly
the
kinds
of
things
that
get
options
prices
on
broad
based
indices
like
the
S
and
P
five
hundred
elevated
because
that's
going
to
be
where
that
Mike Khouw (Chief Strategist)
02:47.790
is
going
to
show
up
most
broadly
so
you
know
from
my
perspective
it
seems
like
there
is
a
little
bit
of
concern
about
these
kinds
of
announcements
and
you
know
there
could
be
a
knee
jerk
reaction
that
happens
to
risk
assets
as
a
result
of
it
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