Liz Dierking and Jenny Andrews discuss market volatility expectations for 2026, predicting potentially lower volatility with a steady upward grind. Using SPX options data, they analyze the expected price range for next year, suggesting the index could trade between 5817-7817 from its current 6817 level, with both hosts favoring the upside target.

The duo highlights attractive high-volatility trading opportunities in metals (silver, gold), exploring iron condor strategies in SLV with an 83 volatility rank. They also evaluate trade setups in Firefly Aerospace (FLY), micro crude oil (MCL), and Oracle, which has dropped from $340 to $185.

For current market conditions, they note Bitcoin's decline to $86,000 from its early-year $95,000 level and discuss how the 2025 stock market rally has been narrowly led by tech stocks that are now showing weakness.

Liz Dierking and Jenny Andrews discuss market volatility expectations for 2026, predicting potentially lower volatility with a steady upward grind. Using SPX options data, they analyze the expected price range for next year, suggesting the index could trade between 5817-7817 from its current 6817 level, with both hosts favoring the upside target.

The duo highlights attractive high-volatility trading opportunities in metals (silver, gold), exploring iron condor strategies in SLV with an 83 volatility rank. They also evaluate trade setups in Firefly Aerospace (FLY), micro crude oil (MCL), and Oracle, which has dropped from $340 to $185.

For current market conditions, they note Bitcoin's decline to $86,000 from its early-year $95,000 level and discuss how the 2025 stock market rally has been narrowly led by tech stocks that are now showing weakness.

Hosts Nick and Tony explored Kai's comprehensive three-year FOMC zero-DTE study revealing dramatic differences between morning and post-announcement entries. The 8:30am entry data showed 19 winners versus 4 losers (83% success rate matching non-FOMC days) but disappointing $4 average P&L despite collecting $5.80 credits - the tail losses from binary event risk overwhelming the higher premiums. In stark contrast, the 1:05pm post-announcement entry achieved perfect 23-for-23 success with $184 average P&L and 49-minute average hold times ($200+/hour). The Wednesday FOMC chart visualization showed premiums completely flat from 8:30am through 1pm despite price movement, with VIX-1D actually rising in some periods even as SPX stayed range-bound. Kai emphasized from personal trading experience that premiums often increase during the waiting period (contrary to typical decay), making the morning session essentially "worthless" for zero-day trading. The study reinforced skipping FOMC entirely or waiting for 1pm vol crush, with Friday's reversal providing second example where early position turned from winner to max loser for those who didn't take profits at noon when SPX briefly touched 6850.

Hosts Nick and Tony explored Kai's comprehensive three-year FOMC zero-DTE study revealing dramatic differences between morning and post-announcement entries. The 8:30am entry data showed 19 winners versus 4 losers (83% success rate matching non-FOMC days) but disappointing $4 average P&L despite collecting $5.80 credits - the tail losses from binary event risk overwhelming the higher premiums. In stark contrast, the 1:05pm post-announcement entry achieved perfect 23-for-23 success with $184 average P&L and 49-minute average hold times ($200+/hour). The Wednesday FOMC chart visualization showed premiums completely flat from 8:30am through 1pm despite price movement, with VIX-1D actually rising in some periods even as SPX stayed range-bound. Kai emphasized from personal trading experience that premiums often increase during the waiting period (contrary to typical decay), making the morning session essentially "worthless" for zero-day trading. The study reinforced skipping FOMC entirely or waiting for 1pm vol crush, with Friday's reversal providing second example where early position turned from winner to max loser for those who didn't take profits at noon when SPX briefly touched 6850.

Dr. Jim, Tony, and Nick discuss how implied volatility impacts trading strategies heading into 2026. While traders desire higher volatility for new opportunities, they noted volatility expansion helps new positions but hurts existing trades - a critical distinction for market participants.

The panel offered mixed market outlooks, with some skepticism about reaching 7700 in the S&P without significant pullbacks first. They observed that former market leaders aren't bouncing back as strongly in recent rallies, suggesting potential choppiness ahead.

For traders, the key takeaway: implied volatility expansion creates better selling opportunities with higher premiums and wider breakevens for new positions, while volatility contraction benefits existing short premium trades. This reinforces tastylive's core strategy of increasing exposure when volatility is high and reducing it when volatility is low.

Dr. Jim, Tony, and Nick discuss how implied volatility impacts trading strategies heading into 2026. While traders desire higher volatility for new opportunities, they noted volatility expansion helps new positions but hurts existing trades - a critical distinction for market participants.

The panel offered mixed market outlooks, with some skepticism about reaching 7700 in the S&P without significant pullbacks first. They observed that former market leaders aren't bouncing back as strongly in recent rallies, suggesting potential choppiness ahead.

For traders, the key takeaway: implied volatility expansion creates better selling opportunities with higher premiums and wider breakevens for new positions, while volatility contraction benefits existing short premium trades. This reinforces tastylive's core strategy of increasing exposure when volatility is high and reducing it when volatility is low.