Volatility Views 666: Metals Apocalypse

A historic rout in the precious metals markets steals the spotlight this week on Volatility Views. From silver’s massive 25% intraday drop to the naming of a new (and hawkish) Fed Chair nominee, the panel breaks down why the "Metals Apocalypse" might be a canary in the coal mine for the broader equity markets.

Join Mark Longo, Dr. Russell Rhoads, and Mark Sebastian as they navigate a high-velocity week of volatility, earnings, and unusual institutional positioning in the VIX.

Episode Highlights The Silver Slump

The "Meme-ification" of silver reached a breaking point this week. After months of triple-digit volatility levels, silver prices cratered 25% in a single session. The panel discusses whether this 46-year historic event suggests a broader 20% retracement for the S&P 500 is on the horizon.

Fed Chair Shakeup

The market reacted negatively to the news of Kevin Warsh potentially taking the helm at the Fed. While he has campaigned for lower rates, his history as an inflation hawk has traders worried about a return to a strict "dual mandate" focus that might not be as market-friendly as the Powell era.

Unusual VIX Activity

Despite the market sell-off, we aren't seeing "panic" buying in near-term VIX options. Instead, institutional paper is flowing into March and April, including a massive 80,000-contract diagonal spread involving June 47.5 calls. Is it a hedge, or just a sophisticated carry trade?

Notable Quotes

"When gold and silver catch a cold, the miners catch every single disease you could possibly catch from the Oregon Trail. They're getting dysentery, typhoid, and malaria all at once." — Mark Sebastian

"If you blink, you miss a move up in VIX futures. That's the only opportunity to make money being long them, and it leads to massive upside fatigue." — Dr. Russell Rhoads

Resources Mentioned

Brokerage: https://Tastytrade.com/podcasts

Social Media: Follow the crew on X: @Options, @OptionPit , @Rhoads_Russell .