To The Moon

When big events hit, stock volatility jumps — but each stock moves on its own. To see the market’s overall “temperature,” traders watch the VIX (Volatility Index).

📘 In The Options Handbook, you’ll find a full breakdown of the VIX:

▶ What is VIX? 💡

Nicknamed the "fear index," the VIX measures market expectations for volatility over the next 30 days. It's calculated using $S&P 500(.SPX)$ index options.

• High VIX (>30) = the market is in panic mode. Investors buy protection, and option prices jump.

• Low VIX (<15) = the market is calm or overconfident. Risk feels cheap, and so do options.

Historically, sharp spikes in the VIX often align with significant market drops. A falling VIX, on the other hand, usually signals that things are settling down.

▶ How to trade it with options: 🔥

1. Sell Options in Fear – When VIX spikes and puts/calls get overpriced, selling them can capture rich premiums.

2. Volatility Mean Reversion – Extreme highs/lows in VIX can be traded for an expected return to normal levels.

3. Spot Turning Points – Big VIX surges often flag major events or “black swans” — time to hedge with puts.

✨More beginner-friendly tips and VIX strategies are in The Options Handbook, now in the Tiger Coin Center! 🛒

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