Volatility & advanced strategies
What is VVIX (Volatility of VIX) and how does it forecast structural regime shifts in options pricing?
By Easy Money Scanner · Educational reference · Not investment advice
The short answer
VVIX measures the implied volatility of VIX options themselves, gauging expected volatility-of-volatility and signaling when traders anticipate sharp, unstable shifts in the market's fear gauge.
How it works
Calculated using the same CBOE methodology applied to VIX options rather than SPX options, VVIX spikes often precede or accompany periods of structural market stress and volatility regime transitions.
An example
VVIX surged alongside VIX during the February 2018 volatility spike, reflecting uncertainty about how much higher volatility itself could move.
Risk & limitations
VVIX is a niche institutional indicator with thin retail-accessible trading products, and elevated VVIX does not reliably predict direction of the next VIX move.
Examples are hypothetical, not trade recommendations. US contract and regulatory references do not automatically apply in Canada. Rules, margin requirements and broker policies can change; confirm them with the relevant authority and your broker.