×

The Trade: How to trade the volatility surge

Traders work on the floor of the New York Stock Exchange.
Lucas Jackson | Reuters
Traders work on the floor of the New York Stock Exchange.

Volatility is spiking as the market sell-off accelerates. How can investors trade the rising volatility using history as a guide?

The CBOE Volatility Index, or VIX, is a key measure of market expectations of near-term volatility conveyed by S&P 500 stock index option prices, according to the CBOE. The VIX is already up 29 percent in the month of February.


1-year CBOE Volatility Index

Source: FactSet

Investors are bracing for a return to the volatility levels of last August. CNBC Pro screened for which ETF securities will move if the VIX continues to rally to the critical 34 level of last summer, using hedge fund analytics tool Kensho.

Here is what we found.