SPX is King and VIX is Queen

SPX@CBOE or S&P 500 Index is the market. Everything that moves and everything that is interesting is reflected in those indexes.

Every crash, peak, hype and fear is there. VIX@CBOE or the Volatility Index of SPX is the pure reflection of fear and greed in the market. 

When markets move, the volatility moves and vice-versa. Correlations work for the long term, but when volatility spikes, everything is correlated.

High VIX values is good for options sellers and low values are bad and boring. Note that long periods of low VIX end up in massive explosions.

VIX historical data

Keep in sight the most moving assets for the day. Assets going down are more interesting as premium is going up. As premium sellers that’s when the action is lighting fast and the bids are juicy. Market fear is good for options trades as premium goes up. Be patient to catch those moments and act immediately. That’s when your edge is wide and clear.