So, we’re well off the highs in the VIX—but a 30-handle is still considered elevated by historical standards.
Why does that matter?
VIX above 30 typically signals that there’s still plenty of undigested stress and uncertainty swirling around in the markets. It tells us that fear hasn’t fully cleared, and the waters are still too choppy for comfort. Historically, when VIX is at these levels, it’s often during periods of heightened news-driven volatility, unclear macro narratives, or disorderly price action.
And more importantly—for me, at least—it signals that taking anything other than shorter-term trades can be problematic. Swing trades that might normally take weeks to play out can get chopped up or invalidated in hours. Markets at these volatility levels are unforgiving to those who overstay their welcome.
This is the market we have, and we have to trade it as it is, not as we wish it would be.
In today’s Options Jam Session, I cover this in more depth—along with a great teaching moment from two recent trades that moved in opposite directions. Both trades used variations of a calendar/diagonal spread strategy, and the contrasting outcomes offer a perfect case study in how this type of trade can both help and hurt us depending on the timing, the structure, and the behavior of implied volatility.
Check it out here:
Sean McLaughlin | Chief Options Strategist, All Star Charts
