Is there a reliable, high probability method for trading the VIX?
Analysis of the VIX reveals that historically, this volatility indictor for the S&P 500 has never traded made a material drop below the 10 level. With the recent sustained uptrend in the market on healthy volume, the VIX settled lower with each passing day until the 10 level was reached. This signaled a potential trading opportunity. Options on the VIX are now available, which makes it possible to trade the fluctuations of the index. These options trade a bit differently than the majority of options contracts and follow a different expiration schedule.
