Hedge Funds Are Mining Volatility From the VIX-VVIX Divergence

Lucas and Luna unpack an unusual disconnect in the volatility market as of June 16, 2026: the VIX has plunged 27.6 percent in five days to 16.09, while the VVIX — the 'volatility of volatility' — has only fallen 8.6 percent to 87.58. They explain why this gap signals a potential tail-risk event and how hedge funds are using options on the VIX, variance swaps, and put spreads to position for a volatility spike. The conversation touches on the SpaceX IPO aftermath, the Russell 2000's recent 2.7 percent rally, and why the Fed's flat reserve rate is keeping short-vol traders on edge. #VIX #VVIX #Volatility #HedgeFunds #OptionsTrading #TailRisk #VarianceSwaps #SPX #Russell2000 #Fed #SpaceXIPO #VolatilityArbitrage #FexingoBusiness #BusinessPodcast #Finance #Investing #Derivatives #MarketStructure Keep every episode free: buymeacoffee.com/fexingo