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How Day Traders Are Using Dispersion to Profit in Low Vol
Season 1
Episode 28
Published 2 months, 2 weeks ago
Description
Lucas and Luna break down how the VIX at 16 and VVIX at 90.5 create a dispersion opportunity day traders can exploit with pairs trades. They walk through a concrete example using two small-cap ETFs — one high-beta, one low-beta — and explain why the current VVIX/VIX ratio above 5.5 signals regime change. The hosts discuss position sizing for dispersion trades, how to set stops when correlation breaks, and why this environment favors pairs over directional bets. No vague theory — just a specific trade structure viewers can adapt to their own screens.