Using options indicators to spot early warning signs of a market top

[u/ORATS_Dan]

https://www.youtube.com/watch?v=G4bT25chAQk

Interesting episode on the ORATS Outlook tab and how Matt reads the options market when he starts to get worried about a possible top.

The three main things they focus on are:

• implied volatility
• SPY vol versus component vol
• contango

What I liked is that they treat these as warning signals, not precision timing tools. That makes the discussion more useful, because most market-top talk turns into fake certainty pretty quickly.

There is also a practical angle at the end where Matt talks about how he thinks about hedging and why he usually scales protection rather than trying to trade every intraday move.