Vol ROC Indicator [ASM]

Volatility crush indy

TL;DR: Vol Crush = market up.

Fundamental theory:
1) Vol must rise to be crushed. Why does it rise? Big guys expect “risk event” and buy insurance (put options). They are smart ok, they may see risk that we don’t. Then supply / demand law (or just put-seller rises prices) –> puts get expensive -> VIX go up = SPY usually down because of that risk event looming.
2) If risk event doesn’t happen (off the table)… Insurance no longer needed right? SPY bravely goes up = puts cheap again = VIX go down.

Technicals:
Option market makers’ (MM’s) mechanical flows. Gamm, GEX,VEX, etc.
When investor buys puts = VIX goes up -> MM shorts $SPY.
Then if Vol crushes, puts decrease in value -> MM buys back SPY that he shorted earlier.

Specifics:
In this example instead of VIX, we use Nations taildex index. It shows price crash protection put options.
Green triangle. If TDEX > 20 puts expensive and market expects risk event. When TDEX falls below 20 then risk event cancelled or not so scary anymore. Green trianlge signals.
Green background. Again if TDEX > 20, then falls -15% within 2 days, you get a background signal.

Other variants.
You can change TDEX to VIX, VOLI. Use another overbought levels or use another vol change percentages.