8 Minute Read

Tackle Today: The Low VIX is Proving Sticky

August 18, 2022

By | No Comments

«Here’s what a low VIX means.»


As stocks have soared, implied volatility has sunk. But unlike previous episodes where declines in the CBOE Volatility Index (VIX) have rapidly reversed, this one is sticking around. Traders have to acclimate themselves to a new lower volatility environment. Here are three implications of having the VIX sitting at 20.

  1. A VIX of 20 means SPX options are pricing in daily moves of 1.25%. And, based on recent market movements, even that seems too high.
  2. Premiums have been lowered across the board. That means lower paydays for naked puts, covered calls, condors, and the like.
  3. As long as the low VIX lasts, we won’t see the massive swings of the year’s first half. The hellish ride of 2022 has turned into a kiddie coaster.


Video Of The Day: Jedi Options – What is a Put Calendar Spread?

In today’s Jedi Options, Coach Tyler explains what a Put Calendar Spread is.

Chart of the Day: CBOE Volatility Index ($VIX)

Chart of the Day: CBOE Volatility Index ($VIX)

The CBOE Volatility Index has found a new home near 20. Despite the market selling off the last few days, the VIX has been reticent to rise.

Today’s line up

Traders Lounge 11 AM EST

Join the coaches in this live lounge, ask questions, discuss ideas or just sit back and listen to veteran traders discuss market conditions.

Cashflow Club 8:30 PM EST

Held every Thursday before Friday’s option contract expirations, this show helps you perfect your favorite cashflow strategies.

Halftime Report 12:30 PM EST

The Halftime Report starts at 12:30 EST and covers what news is driving the market, chart analysis from the movers and shakers of the day, and fun in a way that only Matt and Tim can deliver.

Tackle Trading: Financial Freedom is a Journey. Sign up now for a 15-day free trial.

Financial freedom is a journey

Sign up now and gain unfettered access to all of the quality content and powerful Scouting Reports that our Pro Members enjoy for 15-days absolutely free with no strings attached and let us show you what your trading has been missing.

Legal Disclaimer

Tackle Trading LLC (“Tackle Trading”) is providing this website and any related materials, including newsletters, blog posts, videos, social media postings and any other communications (collectively, the “Materials”) on an “as-is” basis. This means that although Tackle Trading strives to make the information accurate, thorough and current, neither Tackle Trading nor the author(s) of the Materials or the moderators guarantee or warrant the Materials or accept liability for any damage, loss or expense arising from the use of the Materials, whether based in tort, contract, or otherwise. Tackle Trading is providing the Materials for educational purposes only. We are not providing legal, accounting, or financial advisory services, and this is not a solicitation or recommendation to buy or sell any stocks, options, or other financial instruments or investments. Examples that address specific assets, stocks, options or other financial instrument transactions are for illustrative purposes only and are not intended to represent specific trades or transactions that we have conducted. In fact, for the purpose of illustration, we may use examples that are different from or contrary to transactions we have conducted or positions we hold. Furthermore, this website and any information or training herein are not intended as a solicitation for any future relationship, business or otherwise, between the users and the moderators. No express or implied warranties are being made with respect to these services and products. By using the Materials, each user agrees to indemnify and hold Tackle Trading harmless from all losses, expenses and costs, including reasonable attorneys’ fees, arising out of or resulting from user’s use of the Materials. In no event shall Tackle Trading or the author(s) or moderators be liable for any direct, special, consequential or incidental damages arising out of or related to the Materials. If this limitation on damages is not enforceable in some states, the total amount of Tackle Trading’s liability to the user or others shall not exceed the amount paid by the user for such Materials.

All investing and trading in the securities market involves a high degree of risk. Any decisions to place trades in the financial markets, including trading in stocks, options or other financial instruments, is a personal decision that should only be made after conducting thorough independent research, including a personal risk and financial assessment, and prior consultation with the user’s investment, legal, tax and accounting advisers, to determine whether such trading or investment is appropriate for that user.

Chart Modal

Tackle Trading

Let us help you start trading!

Our Pro Membership gives you the tools to tackle all your trading obstacles.

Register for the Options Success Training Cours & Get the First 15 Days on Us

Book a FREE Consultation

Sign up for a free consultation to build your Educational Plan.