Vol shorting is an advanced options strategy where traders sell volatility, typically via VIX futures or short straddles, betting that market turbulence will decline. By collecting premium as implied volatility decays, these traders profit when prices stay calm. Institutional investors, hedge funds, and market makers commonly use it for income generation or hedging tail risks. However, it carries unlimited risk during sudden spikes, making it best suited for experienced risk-takers.
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