"Lighting makes no sound until it strikes." -Martin Luther King Jr. The Russell 2000 is interesting right now as the historic post-Covid run-up in small cap stocks - most notably the meme stocks of AMC and GME - has left the index in uncharted territory.... literally. This gives us a chance to explore some dynamic option valuation techniques that I've previously discussed here and in presentations to the Houston Investor's Association. Let's begin with the monthly chart... Here, we get a good look at the run small cap's have had going all the way back to 2009 but especially in the post-Covid rally. From the context of 'variance' to the index's 20 period moving average, this period represents the most over-extended the Russell has ever been from the trailing mean. Here's the distribution of the historical 20 period variance measurements... In this chart, five of the top seven measurements are from this year... that means the upside variance f