The stock market has been relatively subdued so far this month. But the options market is preparing for volatility ahead.

RBC Capital Markets equity derivatives strategist Amy Wu Silverman explains why. "The options market right now is fairly complacent into the end of the year. You see that in the spot VIX kind of floating at this 13 handle. But when you think about term structure, so just the forward expectations for option prices for volatility, we do see a little bit more uncertainty as different variations of tariffs are enacted or different policies as a new president comes in. And I think that's why we see a little bit more expectations of future volatility."

Watch the video above to hear what data Wu is watching that shows VIX (^VIX) traders may be slightly more worried about what's to come in 2025.

To watch more expert insights and analysis on the latest market action, check out more Market Domination Overtime here.

This post was written by Stephanie Mikulich.