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How Day Traders Read the VVIX Spike as VIX Falls
Description
On this episode of The Day Trading Podcast, Lucas and Luna break down a classic volatility divergence: the VIX dropped to 15.28 over the past week while the VVIX, the volatility of volatility, actually ticked up to 90.90. They explain what this gap signals for short-term traders, why the VVIX often leads the VIX during market turns, and how to use it to spot upcoming breakouts or fakeouts. Drawing on real examples from August 2026 — including the S&P 500's quiet grind to 7,728 and the Russell 2000's 0.3 percent move — they offer practical rules for reading the VVIX's 5-day trend, position sizing when the VIX and VVIX diverge, and when to trust the calm. If you've ever watched the VIX drop and wondered why the market didn't rally, this episode gives you a concrete edge. No fluff, just two pros talking shop about what matters on your screens.