Buying put options on the SPY is a hot trade.
Shares of CBOE Holdings were around $93 early last month, the last time they appeared in this column. Back then, we recommended purchasing the stock (CBOE) to profit from volatility trading without wading into the complexities of derivatives on the CBOE Volatility Index, or VIX. Most dramatically, the VIX, which trades only at CBOE Holdings’ Chicago Board Options Exchange, has finally begun exhibiting extraordinary volatility.
A day after Donald Trump had his worst day of the year, the S&P 500 and the Dow had their second-worst.