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The VIX Volatility Index — aka the fear gauge — right now is hovering above 20. And if you’ve been following me for any length of time, you know exactly what that means…
It means the game changes. It means we adapt. And it means I’m sticking to a rule I’ve followed for over 15 years of professional trading.
When the VIX is over 20, I want to do limited risk strategies. Stocks move a lot during the day, implied volatility is higher and everything gets more expensive.
This isn’t market timing. This isn’t some vague technical setup. It’s cut and dry — and that’s exactly what we need when markets are swinging wildly.
Why Option Prices Are Working Against You Right Now
Most traders don’t appreciate how much elevated volatility reshapes the playing field. Since the VIX measures S&P 500 index options, when the VIX rises, implied volatility rises with it.
Option prices expand, your risk widens and markets whip around with far more force than most people are prepared for.
That’s why limited risk structures become essential. Stocks don’t just drift anymore — they lurch. And when the market behaves like that, you don’t want to be naked on directional exposure. What you want to do is use a strategy built to contain the chaos instead of trying to outrun it.
I’ve been deliberately conservative lately because the conditions demand it. Friday’s violent move after the president spoke was a perfect example of how unpredictable these days can be. One day up, the next down and none of it following a clean narrative.
That kind of environment requires structure, not hope.
Following the System When It Matters Most
This rule isn’t something I came up with on a whim. It’s a principle I learned the hard way. Early in my trading career, before I truly respected the power of volatility, I had days where the market crushed me.
I’ve thrown up after losses. I’ve watched a quarter-million dollars disappear in a shockingly short amount of time. Nothing teaches discipline faster than that kind of pain.
So when I say VIX over 20 means shifting to limited-risk strategies, it’s not theory — it’s survival. And after all these years, it’s still the single cleanest rule of thumb I rely on.
When you follow the system with discipline, you get high-probability outcomes almost every day. Not because the market becomes easier, but because your approach adapts to what the market is actually doing. And right now, the market is telling us volatility is demanding respect.
This isn’t the trending bull phase where you could buy AI names and ride them for weeks. That market is gone, at least for now. Elevated volatility changes everything — the risk, the pace, the cost and the way you structure trades.
So when that VIX number crosses above 20, don’t fight it. Don’t try to hero your way through massive swings. Shift to limited-risk strategies, protect your capital and keep yourself in the game.
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 the team at Lance Ippolito Trading, New Money Crew 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 Didn’t Discover This Hack Until Recently
I recently shared a breakthrough that completely changed how I approach my options trades…
It’s a simple shift — but it means that once the trade is set, my job is basically done.
I enter the position, and step away from the screen.
And because of how these trades are built from the start…
They’re designed to target a $1,250 payday when everything lines up.
- NO hunting for “perfect” opportunities.
- NO mapping out complex exit plans.
- NO scrambling to close the trade at the right moment.
It’s an approach that fits anyone who doesn’t have time to babysit charts all day.
And the interesting part?
Opportunities like these tend to show up about once a week… sometimes more.
Now, I can’t make absolute trading guarantees…
But I’m preparing to go after a new one this week, and you’re welcome to follow along.
But first, I need to walk you through the structure of the trade and the small tweak that makes it work.
If you’d like to see how it all fits together…
