The VIX and VVIX Divergence Signaling Complacency Risk

The Cboe Volatility Index (VIX) sits at 16.05, relatively calm for a market near all-time highs. But the VVIX, which measures volatility-of-volatility, is up over 2% in the past week to 91.60. Lucas and Luna dig into this divergence: what it means when the VIX is low but the VVIX is rising. They explore how this pattern historically precedes sharp selloffs, especially when combined with sticky core inflation at 3.3% and geopolitical shocks from the Iran war tariff pushing household energy costs $450 higher. Is the market too complacent? This episode breaks down the signal every options trader watches when the VIX seems boring. #VIX #VVIX #VolatilityOfVolatility #OptionsMarket #Complacency #MarketRisk #CoreInflation #IranWarTariff #EnergyInflation #S&P500 #FedPolicy #MarketSentiment #InvestorPsychology #MacroRisks #Economics #FexingoBusiness #BusinessPodcast #EconomicForecast Keep every episode free: buymeacoffee.com/fexingo