The Options Box

[Poet]

Hi,

The VIX spiked today and there's talk of capitulation, so I'm expecting a few-day bear rally. The options strategy for those expecting a bounce with a high VIX/VXN is selling puts rather than buying calls. They're both bullish strategies but selling puts takes advantage of the high volatility which inflates options premiums right now.

That said, I see this as a position trade only for a couple of days. I'd sell front-month puts.