Volatility Views 702: AI Armageddon, Plagues and… Butterbean?

What happens when the AI trade unravels and volatility punches back? Mark Longo welcomes volatility expert Bill Luby and Mark Sebastian of Option Pit to break down a tumultuous week for tech stocks, VIX futures and volatility trading.

The panel examines the AI sell-off, post-election uncertainty surrounding data centers, and the unusual market signals that caught traders' attention before the rout. Was this panic selling—or a major position unwind with more room to run?

On this episode: • VIX and VVIX surge as the tech trade comes under pressure. • VIX futures swing rapidly from contango into backwardation. • Mark Sebastian explains why unusual market behavior gets him thinking about buying gamma. • ETF options gain ground as leveraged and single-stock ETFs expand traders' choices. • VIX puts take center stage, including November 18 puts and downside spread activity. • The panel discusses SVIX reentry, compounding decay and the risks of buying the dip in inverse volatility products. • Why selling naked VIX calls earns an unexpected comparison to fighting Butterbean. • The crew makes its next round of VIX forecasts in the Crystal Ball.

Plus, illness sweeps through the lineup, Bill reflects on his VIX and More archives, and the panel brings some much-needed humor to a bruising week.