How Options Traders Are Using the VIX Premium for Directional Trades

With the VIX surging 27% in five days to 20.02, Lucas and Luna explore how options traders can use the VIX premium—the gap between VIX futures and spot VIX—to make directional bets on volatility. They break down the mechanics of contango and backwardation, using the current spike as a case study. The hosts discuss why a rising VIX doesn't always mean panic, how to size a short VIX position when the term structure is in contango, and what the VVIX at 102 tells us about tail risk. Includes a concrete walkthrough of a VIX call spread trade and a look at why the May 2026 jobs report triggered the move. Perfect for retail traders who want to go beyond just buying puts when markets sell off. #VIX #VIXPremium #VolatilityTrading #OptionsTrading #Contango #Backwardation #DirectionalTrades #VVIX #SP500 #JobsReport #FederalReserve #TailRiskHedging #GammaScrubs #FuturesMarket #RetailInvestor #Finance #FexingoBusiness #BusinessPodcast Keep every episode free: buymeacoffee.com/fexingo