How Options Traders Use the VIX Premium for Directional Trades

In this episode of Options Trading with Fexingo, Lucas and Luna explore how professional options traders use the VIX premium — the gap between VIX futures and the spot index — to gauge sentiment and set up directional trades. With the VIX at 15.22 and the S&P 500 near 7,584, they break down when contango signals complacency and when backwardation hints at panic. Using real data from June 4, 2026, they discuss a specific strategy: selling VIX call spreads during steep contango to collect theta, and buying VIX puts when the term structure flattens. They also touch on how the VVIX (currently 85.84) can confirm whether the premium is worth trading. A must-listen for retail traders looking to add volatility-based directionals to their toolkit. #OptionsTrading #VIX #Volatility #Contango #Backwardation #VVIX #Theta #CallSpread #PutSpread #DirectionalTrading #S&P500 #Futures #Premium #Sentiment #Hedging #Finance #FexingoBusiness #BusinessPodcast Keep every episode free: buymeacoffee.com/fexingo