Loading...
Loading...
The CBOE Volatility Index measuring expected 30-day S&P 500 volatility derived from SPX option prices. Often called the "fear gauge." VIX 15–25 is the premium selling sweet spot; above 25 signals elevated uncertainty.
⚡ KEY TAKEAWAY: VIX 15–25 is the sweet spot for premium sellers — enough fear for rich premiums, not enough for gap risk.
Term Structure
Contango = normal, good for sellers. Backwardation = market stress, reduce position size or wait.
Contango
Normal state = green light for sellers. VIX/VIX3M below 0.9 means term structure strongly supports premium selling.
Backwardation
Market is pricing more fear now than later. Reduce size, tighten stops, or sit out until contango returns.
VIX3M
Watch VIX/VIX3M ratio, not VIX alone. Ratio below 1.0 confirms the market isn't panicking short-term — safer to sell.