A key volatility metric rallied sharply Monday after a period of decline. How can investors trade an impending volatility event using history as a guide?
The CBOE Volatility Index, or VIX, rose 8 percent Monday. It is a key measure of market expectations of near-term volatility conveyed by S&P 500 stock index option prices, according to the CBOE. As of Friday the VIX traded at its lowest levels since mid-August 2015 before the market turmoil later that month.