LIVE at 1PM ET: Kane and Roger target a potential 50%+ 0DTE trade on SPY
If you think the market will settle down anytime soon, think again. Volatility isn’t some temporary phenomenon — it’s baked into the current market environment.
And if you know how to trade it, you can turn the chaos into an advantage.
Why Volatility Isn’t Going Away
There are plenty of reasons the market keeps swinging. The Federal Reserve’s policy shifts, geopolitical tensions, tariffs, and algorithmic trading all fuel sharp moves.
But the real driver? Liquidity — or rather, the lack of it.
Market makers are less willing to take on risk, which means even small orders can trigger outsized price swings. Add in the rise of zero-day options (0DTE) and retail speculation, and you get a market that lurches unpredictably.
The Best Way to Trade Volatility
When volatility spikes, most traders panic. Smart traders adapt. The key is knowing whether to trade volatility directly or adjust your approach to stocks and options.
If the VIX is climbing, long volatility plays like VIX calls or long straddles — more on this below — can capitalize on the movement.
If volatility is high but expected to revert to the mean, selling options — like iron condors or credit spreads — can generate steady income.
The biggest mistake? Ignoring volatility altogether. Whether you’re trading stocks or options, volatility dictates price action. Understanding it isn’t optional — it’s essential.
How to Execute a Long Straddle on the VIX — and Why It Works
If you expect volatility to move but aren’t sure which direction, a long straddle on the VIX can be a smart way to profit. It’s a pure volatility play — and when executed correctly, it can deliver big returns when the market gets wild. Here’s how to do it.
What Is a Long Straddle?
A long straddle involves buying both a call and a put at the same strike price and expiration. Since you’re long on both sides, you make money if the VIX makes a big move up or down. The more violent the move, the better.
Setting Up a Long Straddle on the VIX
- Choose the Right Expiration: The VIX is a mean-reverting index, so timing is key. Short-term expirations (one to two weeks out) capture rapid swings, while longer expirations allow more time for a big move.
- Pick the At-the-Money Strike: Since you need movement in either direction, stick with the strike closest to the current VIX level.
- Buy the Call and the Put: Enter both positions simultaneously. This ensures you’re locked in at the same price, maximizing your exposure to volatility shifts.
- Manage the Trade: If the VIX surges, your call will gain value fast. If it collapses, your put does the heavy lifting. The key is knowing when to take profits — typically when one side has doubled or more in value.
When a Long Straddle Works Best
This strategy thrives when the market is on edge. If traders are underestimating upcoming volatility — like before an FOMC meeting, major economic report or geopolitical event — a long straddle lets you profit from the inevitable volatility explosion.
Just remember…
The biggest risk is low volatility. If the VIX stays stagnant, both options lose value, so you need a catalyst. But when the market wakes up, a well-timed VIX straddle can deliver explosive gains.
Kane Shieh
Kane Shieh Trading
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*This is for informational and educational purposes only. There is inherent risk in trading, so trade at your own risk.
P.S. LIVE at 1PM: Kane & Roger Target Potential 50%+ 0DTE Trade on SPY
The SPY is setting up exactly as Roger anticipated, and at 1 p.m. ET, we’re going LIVE to reveal the exact 0DTE trade we’re taking with Alpha Zone Pro.
With 0DTE options volume hitting all-time highs, we’ll demonstrate how a tiny 0.5% move in SPY could help target gains of 50%+ using Roger’s 94.1% win rate system.
