 What's up trade hackers welcome to today's update today's Monday April 27th starting with the trade hacker question of the day What is a volatility crush? So we use that term volatility crush or vol crush and so I want to make sure I clarify What exactly that means so if we go to the platform, let's take a look at Apple as an example and Volatility crushes happen on a consistent basis around an earnings announcement. So you can see right here It's indicated by the earnings announcement and what happens is right before earnings There is uncertainty right uncertainty around revenue sales everything else And so that pushes the price of the options up that pushes implied volatility higher And then what happens as soon as they make that announcement and that uncertainty comes out So all the known factors are now on the table that volatility gets crushed You know in this case it went from on the IV percentile went from 73 down to 10 And that just sucks the premium right out of those options So that's what we mean by volatility crush now that can happen around earnings That can happen around other binary events if there's some type of economic data Announcement or some other type of big binary event that has uncertainty prior to it And then has that certainty afterwards you'll get that vol crush And so how do we look at this when we place trades stick with Apple is our example the option Greek that can be related to this volatility or the vol crush is Vega and I'm not going to go into all the details of Vega and how it works But the one factor I want to point out is that if your trade is a negative number on Vega That means it will benefit from a vol crush. It will benefit from volatility contracting So I'm showing an example of a short strangle and Apple and so obviously we want to sell these types of strategies Sell to open when applied volatility is high And we want to benefit from that implied volatility contraction or from that vol crush Now if we look at a different trade like a calendar or in this case a double calendar Now look at Vega Vega is positive. So this type of strategy actually benefits from an increase In volatility and it gets hurt from a vol crush So that is just two examples and and so every strategy, you know in your brokerage platform We're looking at thinkorswim You're able to see what that Vega number is if it's positive it benefits from volatility expansion if it's negative It benefits from volatility contraction or what we like to call a vol crush Alright, so hopefully that helps. Let's take a look at just the markets in general starting with Our good friend. Yes, s and p 500 up 39 points market. Just closed a little bit ago. Dow up 339 Nasdaq up 53 Russell at 52. Look at the difference in the percentage gains here Russell is up over 4 percent on the day where nasdaq is up less than 1 percent So big move in the small caps today Oil getting slapped around again down 23 percent Gold pretty flat And natty gas up five and a half percent And bonds down almost a percent so So moving going on now some of that happened overnight And so it was actually fairly quiet day as far as movement during the actual open market hours But some of the other stocks Banks up big a lot of the banks up four or five plus percent the other big mover today tesla Up another 10 percent. Let's see. Where's tesla? Where's my tees? There we go up 10 percent. So just Extraordinary moves in tesla continue and I mean look at this thing It was at the bottom of the the most recent bottom here is at 350. It's already it's it's over doubled It's almost 800 and they've got earnings coming up Speaking of earnings. Let's take a look at what's got earnings this week. It's all about oil and airlines So if we take a look here nothing really today on monday tomorrow, we've got southwest We've got bp oil company then on wednesday We've got bowing our friend tesla facebook ebay some tech in there as well And then twitter apple on thursday amazon on thursday a lot of tech companies on thursday and then on friday Another big oil day exxon and chevron and philip 66. So that's what's happening in the world today. Hope everybody has a great evening Talk to you tomorrow