As premium sellers, a big part of our trading style is positioned for volatility contraction. Volatility and option prices have a positive relationship (they move in the same direction), so if volatility contracts, then option prices will fall. Volatility itself is normally in a state of contraction, as evidenced by the positive drift that we saw in theor the that usually exists in the /VX futures market. However, volatility doesn’t always contract; it can expand, too. And, when it does, it can happen quickly and explosively. We take a look at both daily and weekly movements in the VIX to support this idea.