What is the VIX?

The VIX measures expected volatility in the S&P 500.

👉 It’s not price
👉 It’s not direction
👉 It’s fear and uncertainty

How to read it

• Low VIX (10–15)
  → Markets calm
  → Complacency building
• Medium VIX (15–25)
  → Normal conditions
• High VIX (25+)
  → Stress / fear
  → Bigger price swings

The key insight

VIX usually moves opposite to the market.

• Market drops → VIX spikes
• Market rallies → VIX falls

Why it matters

• High VIX = opportunity (if you stay rational)
• Low VIX = hidden risk (when everyone is comfortable)

How professionals use it

• Adjust position size
• Hedge portfolios
• Time entries during panic

Simple rule

When fear spikes,
discipline pays.

What is the VIX?

The VIX measures expected volatility in the S&P 500.

👉 It’s not price
👉 It’s not direction
👉 It’s fear and uncertainty

How to read it

• Low VIX (10–15)
  → Markets calm
  → Complacency building
• Medium VIX (15–25)
  → Normal conditions
• High VIX (25+)
  → Stress / fear
  → Bigger price swings

The key insight

VIX usually moves opposite to the market.

• Market drops → VIX spikes
• Market rallies → VIX falls

Why it matters

• High VIX = opportunity (if you stay rational)
• Low VIX = hidden risk (when everyone is comfortable)

How professionals use it

• Adjust position size
• Hedge portfolios
• Time entries during panic

Simple rule

When fear spikes,
discipline pays.