Stock movement does not only affect the market capitalization of various companies, but it also affects the market for insurance on those stocks via. This episode of is centered around the relationship between stock movement and movement.
Tom and Tony look at some historical representations of this relationship through daily movement in the S&P 500 (SPY) and how that movement correlated to daily movement in the S&P IV Index (VIX). After throwing out the extremely low IV year of 2017, the guys find that a 1% move in the stock market has often resulted in a 10% move in the market for options on stocks.
The segment above shows these historical relationships between stocks and implied volatility paired with great commentary from the experienced duo of Tom Sosnoff and Tony Batista.