JasonC

What We Can Learn from Volatility History

As for the other fellow's comment, the whole point of having options and using them is we do not need to know what will happen next to make money. It is enough to know whether a lot will, or whether people's fears of that have reached the "overblown" point.

Which VIX at 70, they have clearly reached the "overblown" point right now. With stocks already down 40% from their peaks, it is likewise already clear they are cheap enough to re-establish long positions. If you want, sell the VIX-inflated calls above market as you do so. Or sell straddles with half your capital, hold stock long with the other half.

(It should go without saying, but an option position to a certain amount of capital means the principle amount in bonds earning and as your collateral, and net option bets only the size of your interest, not your principle).