How Options Traders Use the Volatility Risk Premium to Harvest Theta

In this episode, Lucas and Luna explore the volatility risk premium — the persistent tendency for options to be priced higher than actual realized volatility. Using current data (VIX at 20.17, VVIX at 95.81), they explain how traders can sell premium to collect theta while managing tail risk. The discussion covers the VRP's historical average, how the VVIX signals expensive options, and practical considerations like the recent Kalshi 'perps' launch. A concrete example using the S&P 500 index options illustrates the strategy, with a focus on the June 10, 2026 market environment. #VolatilityRiskPremium #ThetaDecay #Vix #Vvix #OptionsTrading #SellingPremium #TailRisk #FexingoBusiness #BusinessPodcast #Finance #Derivatives #ThetaHarvesting #IndexOptions #Kalshi #ImpliedVolatility #RealizedVolatility #VolatilityArbitrage #SPX Keep every episode free: buymeacoffee.com/fexingo