Identifying the Current Volatility RegimeThe first step in any regime‑aware approach is to know whether the market is in a low, medium, or h

Identifying the Current Volatility RegimeThe first step in any regime‑aware approach is to know whether the market is in a low, medium, or high volatility environment. The most widely followed gauge is the CBOE Volatility Index (VIX), which reflects the market’s expectation of 30‑day price swings. Compare the VIX to its 30‑day moving average: if the index sits well below the average, you are likely in a low‑vol regime; a reading near the average suggests medium volatility; and a clear break above the average signals a high‑vol regime. A second clue comes from the term‑structure skew – the difference between...