VIX just had one of its sharpest single-day spikes in years. Classic fear gauge doing what it does — spiking hard when nobody expects it.
Reminder: VIX measures implied volatility on S&P 500 options over the next 30 days. It's not a predictor, it's a thermometer. High VIX = expensive insurance = panic buying of puts.
What usually happens after these spikes? They fade. Fast. Volatility clusters, sure, but sustained VIX above 30 is rare outside real crises. Most of these blow-offs are one or two-day events.
Don't chase vol. Don't panic sell into it. If you're long quality, this is noise. If you're trading options, this is expensive premium you're paying for protection that decays quickly.
Markets hate uncertainty. They also hate staying uncertain for long. VIX spikes are dramatic, but they're usually short-lived. Stay calm, stick to your process.
Reminder: VIX measures implied volatility on S&P 500 options over the next 30 days. It's not a predictor, it's a thermometer. High VIX = expensive insurance = panic buying of puts.
What usually happens after these spikes? They fade. Fast. Volatility clusters, sure, but sustained VIX above 30 is rare outside real crises. Most of these blow-offs are one or two-day events.
Don't chase vol. Don't panic sell into it. If you're long quality, this is noise. If you're trading options, this is expensive premium you're paying for protection that decays quickly.
Markets hate uncertainty. They also hate staying uncertain for long. VIX spikes are dramatic, but they're usually short-lived. Stay calm, stick to your process.