>>>The News Flow Scanner tipped us off to another BIG move coming into this morning, why you should ignore trading textbooks on stop losses, and why adding to losing positions can set you up for success — Stonkamania starts at 1:30 PM ET!<<<
When volatility spikes, most traders panic…
But for those selling premium — especially through credit spreads — a high VIX isn’t scary at all. It’s a green light. The VIX, or Volatility Index, tracks expected price swings in the S&P 500.
When it climbs above 20, option prices expand, and that means income traders get paid more for the same defined risk.
How Volatility Expands Your Edge
A high-VIX environment inflates implied volatility, which pumps up option premiums across the market. When traders buy puts and calls out of fear, sellers can collect richer credit upfront.
The key is understanding that higher volatility increases distance — your short strike sits farther from the current price while still offering solid premium. That widens your probability of profit and gives your spread more breathing room.
When to Shift From Buying to Selling
Veteran traders follow an old rule: VIX over 20 — sell options. VIX under 20 — buy them. When volatility is low, buying calls or puts is cheaper because fear is minimal.
But when the VIX jumps, those same contracts become overpriced. That’s when selling premium makes sense. Credit spreads limit downside risk while taking advantage of inflated prices, creating consistent income opportunities in rough markets.
High volatility may rattle investors, but it rewards traders who stay disciplined. When fear surges, option premiums rise — and that’s when selling smart, defined-risk spreads can turn market chaos into consistent profit.
Order Flow:
This is for informational and educational purposes only. These are not official alerts issued by Lance, but rather some interesting orders picked by the team at Lance Ippolito Trading.
When you look at these plays, always take the market maker move into consideration.
You can be right on the direction but still lose money if the stock doesn’t move enough. That’s where the market maker move comes in clutch.
With puts, they’re often downside hedges in case a stock tanks, especially around earnings. The further out of the money they are, the more likely they are to be hedges.
Also be sure and check when the company’s earnings date is because many of the plays we post here are centered around earnings!
If a stock is really expensive, consider a spread to lower the cost.
And finally, always remember the golden rule when it comes to buying calls: Buy dips, sell rips — and don’t chase!
If a stock’s moved a ton already today, maybe wait for a pullback.
There is inherent risk in trading. Trade at your own risk.
Note: If no date is listed after the month, it’s the monthly expiration (third Friday).
The team at Lance Ippolito Trading
Lance doesn’t want the CCP spying on him, so you’ll never find him on TikTok. Same goes for other social media sites, which are filled with impersonators, scammers and crypto bros.
You can only find him on his personal YouTube Channel — smash that Subscribe button! https://www.youtube.com/@LanceIppolito
And in his private Telegram channel: https://t.me/+-gVwEIwGJhplMTgx
Important Note: No one from Lance Ippolito Trading, the New Money Crew team or any of its associated brands will ever contact you directly on Telegram.
*This is for informational and educational purposes only. There is inherent risk in trading, so trade at your own risk.
P.S. I Just Published This Week’s Top Names
I’m keeping this momentum going with the top names being flagged for explosive moves.
If all goes as planned, they could result in gains of 2x or more, oftentimes overnight because a lot of these babies move fast…
