Market Measures - September 19, 2025 - Demystifying Denominators: How Numbers Mislead
Update: 2025-09-19
Description
The Market Measures focuses on "Demystifying Denominators". Mike and Jermal explain how numbers can mislead without proper context. When evaluating market moves like the 1987 crash (22% drop), context matters significantly. A similar percentage move today would represent a nearly 9,000-point Dow drop or 1,200-point E-mini move.
Comparing strategies across different underlyings requires normalized metrics like percentages rather than absolute values. While high IV rank products like TLT might appear attractive, traders should consider the actual implied volatility values, as the range between low and high IV is much narrower in some products compared to stocks like TSLA or OKTA.
Comparing strategies across different underlyings requires normalized metrics like percentages rather than absolute values. While high IV rank products like TLT might appear attractive, traders should consider the actual implied volatility values, as the range between low and high IV is much narrower in some products compared to stocks like TSLA or OKTA.
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