{"id":"vol-vix-levels","category":"volatility","title":"VIX-Based Position Sizing","summary":"Scale position size inversely with VIX using K_vix = VIX_baseline / VIX_current.","trigger":{"always":false,"sectors":[],"tickers":[],"regimes":["high_vol","trending_bear"]},"ttl_hours":24,"content":{"sizing_formula":"multiplier = max(0.25, min(2.0, 16.0 / vix_5d_sma))","levels":{"vix_below_12":"Extreme complacency — 1.25-1.50x position size; buy cheap long-DTE leaps","vix_12_to_18":"Normal conditions — 1.0x baseline; balanced debit/credit spreads","vix_18_to_25":"Elevated tension — 0.75x; sell iron condors, credit spreads on strong stocks","vix_25_to_35":"High stress — 0.50x; wide OTM credit spreads only; stop chasing","vix_above_35":"Panic — 0.25x or cash; scalp long puts; wait for capitulation before re-entry"},"key_insight":"When VIX is high, option premium is rich, but realized movement often exceeds implied — decrease total exposure even while selling elevated premium.","verdict":"Use VIX 5-day SMA (not spot) to avoid reacting to intraday spikes. The multiplier automatically halves your exposure in crises and increases it in calm markets — this alone improves risk-adjusted returns."}}