How Options Traders Use the VIX Term Structure

Lucas and Luna unpack the VIX term structure — the curve of implied volatility across expiration dates — and explain how options traders use contango and backwardation to time premium-selling vs. hedging strategies. They anchor the discussion to the current VIX at 15.32 and VVIX at 86.06, showing how the curve's shape has shifted since early May 2026. Lucas walks through a real-world example: selling VIX futures in contango during calm markets, and why the steepness of the curve matters more than the VIX level alone. Luna pushes back on whether the term structure is predictive of actual realized volatility, referencing the May 2026 inflation scare that briefly inverted the curve. No Greeks, no gamma, no VIX smile — just a clean look at the curve every options trader should read before placing a bet. #OptionsTrading #VIX #TermStructure #Volatility #Contango #Backwardation #Futures #Hedging #RetailInvesting #Derivatives #MarketStructure #TradingStrategy #Finance #FexingoBusiness #BusinessPodcast #ImpliedVolatility #VVIX #RiskManagement Keep every episode free: buymeacoffee.com/fexingo