So much for all that gloom and doom.
With the recent surge in the market, not only is the S&P 500 positive in 2016, but more than 40 percent of stocks in the index are now within 10 percent of their respective 52-week highs. But for investors holding on to winners, there is a way to protect profits in the event of increased volatility.
"It might be good to use options as a stock replacement strategy," Dan Nathan said Friday on CNBC's "Options Action," referring to a common options strategy where investors looks to sell stock and use a portion of those proceeds to make a bullish position using options.
"Some of the risks that were really prevalent in the market a couple of months ago that really took [the market and stocks] down may still be there, and you may consider how to stay involved in the name but still define your risk," added the founder of Riskreversal.com.