In this episode, Brent Kochuba of SpotGamma joins Jack Forehand to break down the October options expiration and the surge in volatility that hit markets. They discuss record-breaking options volumes, the impact of zero-DTE trading, Trump’s market-moving tweet, and why the options market is increasingly driving short-term price action. Brent explains how positioning, gamma dynamics, and liquidity flows combine to create instability — and what that might mean for volatility into year-end.

Topics covered:
• Record 110 million options contracts traded and what it means for market structure
• Why volatility spiked even though the S&P 500 barely fell
• The role of dealer positioning and negative gamma in amplifying market swings
• How the AI trade and single-stock call buying distorted implied volatility
• The growing dominance of zero-DTE options and their destabilizing effects
• What OPEX and VIX expirations tell us about volatility mean reversion
• ETF leverage, financialization, and systemic risk
• The relationship between correlation, dispersion trades, and crowding in AI names
• Why volatility events now resemble “spasms” instead of slow corrections
• How these options dynamics could influence the year-end “Santa Claus rally”

Timestamps:
00:00 Record options volume and volatility spike
04:00 The AI call-buying frenzy and how it unwound
10:00 Understanding dealer gamma and hedging flows
12:00 OPEX, VIX expiration, and mean reversion in vol
16:00 Event calendar and upcoming catalysts
18:00 October OPEX setup and neutral call/put balance
21:00 Seasonal trends and the “Santa Claus rally”
27:00 Revisiting September’s predictions and what played out
33:00 Market concentration and AI narrative
40:00 Dispersion trades, correlation, and crowding
44:00 Zero-DTE dynamics and their systemic impact
50:00 Volatility spikes, leverage, and what comes next