Bull Call Spread – VIX

📈 Betting on volatility ahead of October 1st shutdown risk

I typically stick to credit spreads with weekly expirations — that’s my bread and butter. But sometimes the market presents setups worth exploring outside the usual framework.

This is one of those times.

With a potential government shutdown looming on October 1st, I’ve entered a Bull Call Spread on VIX — a debit spread that profits if volatility spikes.

---

---

Trade Structure

• VXY25 Oct 21nd

• Long Call: 16

• Short Call: 20

• Contracts: 4

• Net Debit: -$452

• Max Profit: +$1,148

👉 View on OptionStrat
👉 View in Trade Log

It’s a directional bet on fear:

---

Why now?

Government shutdown deadlines historically create volatility spikes. The VIX tends to jump when uncertainty peaks — regardless of whether the shutdown actually happens or gets resolved at the last minute.

The timing matters here. October 1st is the deadline, and my spread expires on October 21st — giving enough runway for volatility to materialize and potentially fade.

This is a test. A departure from my systematic approach to explore how volatility plays develop around binary events.

The market will tell me if this reasoning holds up.

---

❤️ Support the Project

This Substack is free to read.

If you find value in the posts and want to support consistency,
you can do so 👉 by donating here 👈

Thanks for reading. Let’s build better trades.

---

Disclaimer  

All content is for informational purposes only and does not constitute financial advice.Any trades or strategies should be tested in a simulated environment before use.Trading involves risk, and all decisions are the sole responsibility of the reader.