This passing month has been very challenging for traders. The increasing IV adds additional pressure to options traders - negative P/L, buying power expansions, you name it.

What would have happened if traders started trading options at the top of 2008 before the crash? Tom and Tony examine some research to uncover the answer.

This passing month has been very challenging for traders. But how bad is it right now from a historical perspective?

We explore this by comparing the current market situation and the financial crisis in 2008.

In today’s Market Measure, Tom and Tony look at how often and how severely realized volatility overstates implied volatility. In other words, how much does the expected market movement underestimate actual market movement in periods of market selloffs like we’re experiencing right now.

We find that in this selloff, we had the largest underestimation of market volatility in history where the actual volatility was five times higher than what was predicted by implied volatility.

How often do we see a market behaving like this?

tastytrade's Research Team looks at the last 20 years and calculated the probabilities of having a 1%, 3%, 5%, and 7% daily move in a 5 trading day window.

Ultimately, in the past month, we have been in the top 99.9% percentile in terms of having multiple large moves in a given week. Tom and Tony explain how they plan to use this information for trading going forward days, months, and even years!

Tom walks through a piece he's previously presented and why it's relevant to current market conditions.

Find out how to identify opportunity, why markets tend to go down faster than they go up, reasonable amount of capital to put to use and the subjectivity of "extremes."

Tom runs through his thought process for this market and quick ways to defend against trades and portfolios that are being tested.

Tune in as he emphasizes the importance of high volatility, risk stress, staying small, defined risk, and maintaining a 21 DTE management timeframe.

One of the benefits of options in a trading portfolio is the customizability of your risk/reward profile at no additional cost.

In this Market Measures, tastytrade's Research team aims to use some data to help traders better understand risk tolerance, delta, profitability, and win ratio.

In periods of market weakness, how does buying and holding stock compared to bullish options strategies?

tastytrade's Research team compared long stock, short puts, and covered calls to uncover which strategies reduce volatility and drawdowns.

Ultimately, both naked put options and covered calls allow for trade opportunities with reduced risk profiles relative to simple long or short stock positions.

Tune in as Tom and Tony walk through the data!

What is the loss to premium ratio and how can it help us gain context regarding recovery after losing trades?

How often do stocks vs. other assets experience high market correlation?