UGO05: Volatility’s Blueprint: How Markets Really Move ft. Mandy Xu & Ed Tom

Top Traders Unplugged

Niels Kaastrup-Larsen

Business, Business News, Investing, News

4.8 • 670 Ratings

🗓️ 12 August 2025

⏱️ 55 minutes

🔗️ Recording | iTunes | RSS

🧾️ Download transcript

Summary

From the first futures in 1848 to today’s zero-day options, Cem Karsan, Mandy Xu, and Ed Tom chart how derivatives have moved from the market’s periphery to its center of gravity. At the core is Cboe’s new VIX decomposition tool, which disentangles moves driven by downside hedging, upside speculation, and shifts in the volatility surface. Through episodes like the yuan shock, Volmageddon, and 2024’s “Liberation Day,” they show how positioning can amplify or mute risk, and why vol sometimes rises into rallies. This is a guided tour of volatility’s inner workings, and how reading its structure can reveal the market’s next move before price does.

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Episode TimeStamps:

59:42 - Introduction to the series

02:21 - Where did options come from and where are we going?

10:20 - The purpose and mechanisms of the VIX decomposition tool

18:55 - The history of the VIX index

23:20 - The beginning of a volmageddon

26:24 - A comparison between 2 recent volatility events (August 2024 and April 2025)

35:03 - Key indicators for understanding risk in markets

42:23 - The current state of 0DTE options

50:29 - The optimal way of using VIX and hedge options

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Transcript

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0:00.0	You got, you got, you got,
0:05.0	You got, you got your trade.
0:07.0	You bet, you bet your money just got laid on sex.
0:11.0	Welcome to You Got Options, an exciting series right here on Top Traders Unplugged,
0:17.0	hosted by none other than Jim Carson, one of the sharpest minds when it comes to
0:22.7	understanding what's really driving market moves beneath the surface. In this series,
0:27.8	Gem brings his deep expertise and unique perspective honed from years of experience on the
0:33.0	trading floor to candid conversations with some of the brightest minds in the industry. Together,
0:38.3	they unpack the shifting tides and underlying forces that move markets and the opportunities they create.
0:44.3	A quick reminder before we dive in. You got options is for informational and educational purposes only.
0:50.3	None of the discussions you're about to hear should be considered investment advice. As always, please do your own research and consult with a professional advisor before making any investment decisions.
1:00.0	Now, what makes this series truly special is that it's recorded right from the heart of the action on the trading floor of the Sibo.
1:07.0	That means you might catch a little background buzz.
1:09.0	Phones ringing, trade or shouting, as Jam and his guests unpack real-world insights in real time.
1:15.5	We wouldn't have it any other way, because this is as authentic as it gets.
1:19.4	And with that, it's time to hear from those who live and breathe this complex corner of the markets.
1:24.7	Here is your host, Gem Carson.
1:27.3	Welcome back to another episode of You Got Options
1:29.6	from the Sibo floor, brought to you by Top Traders Unplugged and Kai Media. Today we get to talk to
1:35.2	Mandy Zoo and Ed Tom of the Sibo Market Intelligence team. They get into their new decomposition
1:41.4	tool for the VIX, which breaks down some of the inner workings
1:45.0	of the VIX and how you use options in the best possible way. They dive into positioning and all
	...

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