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 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.
CNBC Pro screened for which S&P 500 stocks and ETF securities will outperform if the VIX continues to rally over a month using hedge fund analytics tool Kensho.