Hosts Nick and Tony explored Kai's January 2026 zero-DTE analysis during a session where E-mini S&Ps broke 7,000 unexpectedly, with Nick admitting "I did not have this on my bingo card" after expecting selloff to 6,950. The January review showed exceptional performance with 100% success rate across 20 trading days averaging $166 daily P&L (second-best month ever behind November's $184), despite markets going "violently nowhere" week-over-week. The analysis compared January 2026 to 10-year historical data, revealing it was "relatively quiet" by long-term standards despite feeling volatile intraday - realized volatility, VIX levels, and trading ranges all below historical averages. The 25% vs 50% profit target comparison showed 50% targets generated higher P&L ($200+ vs $166) but came with larger tail losses and required holding into afternoon sessions (versus 11am exits for 25%), with painful days concentrated around three-four one-directional upside moves. Put spread analysis across four variations (20-delta $20-wide, 20-delta $30-wide, 30-delta $20-wide, 30-delta $30-wide) showed some beat iron condors in bull markets but lacked stability, with iron condors excelling at return on capital due to collecting both-side premium while using less buying power.

Hosts Nick and Tony explored Kai's January 2026 zero-DTE analysis during a session where E-mini S&Ps broke 7,000 unexpectedly, with Nick admitting "I did not have this on my bingo card" after expecting selloff to 6,950. The January review showed exceptional performance with 100% success rate across 20 trading days averaging $166 daily P&L (second-best month ever behind November's $184), despite markets going "violently nowhere" week-over-week. The analysis compared January 2026 to 10-year historical data, revealing it was "relatively quiet" by long-term standards despite feeling volatile intraday - realized volatility, VIX levels, and trading ranges all below historical averages. The 25% vs 50% profit target comparison showed 50% targets generated higher P&L ($200+ vs $166) but came with larger tail losses and required holding into afternoon sessions (versus 11am exits for 25%), with painful days concentrated around three-four one-directional upside moves. Put spread analysis across four variations (20-delta $20-wide, 20-delta $30-wide, 30-delta $20-wide, 30-delta $30-wide) showed some beat iron condors in bull markets but lacked stability, with iron condors excelling at return on capital due to collecting both-side premium while using less buying power.

In today's Skinny on Options: Abstract Applications, Dr. Jim brings a topic that is focused on volatility's rapid movement and its implications for trading strategies. Specifically, the crew dives into Vanna, a second-order Greek that illustrates how Delta changes with fluctuations in implied volatility (IV).

They emphasize that as IV rises, Deltas across the option chain converge towards 50, making all options behave similarly to at-the-money options. The discussion highlights practical approaches to trading in high-volatility environments, reinforcing the importance of selling premium and managing Delta exposure.

In today's Skinny on Options: Abstract Applications, Dr. Jim brings a topic that is focused on volatility's rapid movement and its implications for trading strategies. Specifically, the crew dives into Vanna, a second-order Greek that illustrates how Delta changes with fluctuations in implied volatility (IV).

They emphasize that as IV rises, Deltas across the option chain converge towards 50, making all options behave similarly to at-the-money options. The discussion highlights practical approaches to trading in high-volatility environments, reinforcing the importance of selling premium and managing Delta exposure.