There is a lot of debate currently about the low volatility levels & a potential pull back in the market. Although I am not suggesting a short on the market, I believe the volatility levels might be due for a spike. I like a play on the VIX … Feb 20/30 Bull Call Spread for a debit of 1.00 (when I looked at it). For a 10×10 vertical …
Max loss = $1,000
Max Profit = $9,050 (VIX over 30)
BE point 21
It goes without saying that VIX levels can continue to remain low … it’s happened in the past.
Click here for P/L & Call IV graph.