The Options Insider Radio Network Volatility Views 673: Geopolitical Risk and the Death of Lone Wolf McQuade
Mar 20, 2026
Russell Rhoads, VIX expert and author who builds volatility models and ETP strategies, breaks down market swings from Middle East conflict and a surprising shift to a 2027 rate pivot. He explains geopolitical-driven backwardation in VIX term structure. Russell also reviews big VIX option flows, his Gretchen model hit, and a weekend UVIX open-to-open trading edge.
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Middle East Conflict Keeps Volatility Elevated
- Geopolitical conflict in the Middle East is keeping oil-risk premium and volatility elevated despite muted term-structure moves.
- Andrew Giovinazzi and Russell Rhoads noted that threats to the Strait of Hormuz and attacks on energy infrastructure maintain a higher vol regime.
Chuck Norris Anecdote As Market Metaphor
- The hosts noted Chuck Norris's passing and joked markets should be lower for the loss, using Lone Wolf McQuade as an '80s cultural touchstone.
- Mark Longo recalled the supercharger truck scene as emblematic of the era and market sentiment.
Flat Term Structure Can Mask Real Risk
- The VIX term structure can look unchanged week-over-week while front-end risks remain high, masking real market stress.
- Russell Rhoads observed many monthly quotes barely moved, so a glance at the curve understates headline-driven risk.