On Friday's "Options Action," Equity Armor Investment CIO Brian Stutland noted that the last 20 times the VIX has spiked above an elevated reading of 20, the average return in the S&P 500 three and six months later has been a respective 9 and 13 percent.
"Investors have been hugely rewarded if you went out and bought stocks [following these VIX spikes]," said Stutland. "I think it's time to step in and dip your toe in the water here." The VIX surged 10 percent on Friday to close at 22. It is off slightly Monday but still hovering above 20.