In Today’s Masters in Trading: Live All eyes are on the Middle East after this weekend’s escalating conflict. And today, I’m turning my attention back to our five alarm, early warning system of volatility indicators to figure out where risk is building next. First, we have the VVIX telling us the implied volatility of all VIX options. When VVIX spikes, it often marks moments of hedge panic. Large players rush into VIX calls and S&P puts. Those windows frequently coincide with capitulation or exhaustion moves. Right now, the biggest question the VVIX is answering: “Are institutions paying up for crash insurance, or is this just garden‑variety chop in the S&P?” The 2-year vs. 10-year spread then gives us our overall picture of how volatility sits in the broader market. Historically, curve inversions have preceded recessions by several quarters. Steepening typically signals risk-on rotation. Re-inversion often signals renewed growth fear. And that dynamic drives everything from bank stocks to value vs. growth leadership. The yen is the funding currency for all this global risk. A weak yen = green light for carry and risk. But a sudden yen rip would be a risk‑off alarm. Commodities then provide the supply/demand layer that’s moving markets in real time. The 3-2-1 crack spread measures refinery margins — three barrels of crude refined into two barrels of gasoline and one of distillate. Wide spreads signal strong end-product demand and healthy refining economics. Narrowing spreads suggest crude may be rising on geopolitics alone — not real consumption. Gold and silver provide the headline narrative most investors follow. But while any moves in these bellwether metals reflect real rate and policy expectations we should track, copper is the real-economy metal we watch for any underlying supply shocks. Elevated copper prices reflect supply tightness, AI infrastructure buildout, energy transition demand, and capital expenditure cycles. Any divergences between these three are where opportunity lives. Each of these warning indicators is telling us something different right now. And while markets are still searching for direction, we’re using these indicators to get into position while volatility remains cheap. So join me for today’s episode of Masters in Trading LIVE at 11AM EST, where I’ll break down our five major early warning indicators and the key trading opportunities I’m watching from here. P.S. Are you interested in taking the next step toward options mastery? The Masters in Trading Options Challenge is right here to help you in your journey. The Challenge is where we take everything you’ve learned in my daily LIVEs — fixed risk, thesis-driven exits, laddered entries, defined-duration trades, and emotional discipline — and put it into practice in a structured, step-by-step environment. For two weeks, we walk through the foundations of real options trading the way I learned them on the trading floor. You’ll learn exactly how I think, exactly how I build trades, and exactly how I manage both the winners and the losers. Just click here to check out what the Masters in Trading Options Challenge has in store for you. 
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