# How Day Traders Read the Volatility Smile for Reversals

Page: https://stenobird.com/podcast/the-day-trading-podcast-with-fexingo-active-trading-charts-and-short-term-market-strategy-7871865/how-day-traders-read-the-volatility-smile-for-reversals
Text version: https://stenobird.com/podcast/the-day-trading-podcast-with-fexingo-active-trading-charts-and-short-term-market-strategy-7871865/how-day-traders-read-the-volatility-smile-for-reversals.md
Podcast: [The Day Trading Podcast with Fexingo: Active Trading, Charts, and Short-Term Market Strategy](https://stenobird.com/podcast/the-day-trading-podcast-with-fexingo-active-trading-charts-and-short-term-market-strategy-7871865)
Published: 2026-07-06T20:43:04+00:00
Episode link: https://audio.fexingo.com/business/the-day-trading-podcast/episode-0095.mp3
Audio file: https://audio.fexingo.com/business/the-day-trading-podcast/episode-0095.mp3
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Duration seconds: 531

## Resource

In episode 95 of The Day Trading Podcast, Lucas and Luna dive into the volatility smile — a lesser-known options market signal that can tip off reversals before price confirms. With the VIX at 15.57 and the VVIX at 87, they explain how day traders can use the difference between out-of-the-money puts and calls to gauge fear vs. greed skew. They walk through a real example using Apple options, showing how a steep put skew preceded a recent intraday reversal. Lucas breaks down the mechanics of the smile, why it flattens during complacency, and how to spot the edge. Luna pushes back on whether this is actionable for small accounts, and they settle on a practical rule: use the smile as a filter, not a trigger. No fluff, no ticker scroll — just a concrete signal you can check before your next trade. #VolatilitySmile #OptionsTrading #DayTrading #VIX #VVIX #MarketStructure #ReversalSignals #Skew #ImpliedVolatility #OptionsSkew #TradingStrategy #Finance #StockMarket #ShortTermTrading #FexingoBusiness #BusinessPodcast #TradingPodcast #ActiveTrading Keep every episode free: buymeacoffee.com/fexingo

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