I have not paid much attention to VIX recently, so the Barron's article this week caught me off guard. Looks like the implied IV just reached two ( or is it three ) years low. While the major events of this year were just over, what else could spike the IV up from now until EOY ?
What "event" caused the market to crash in 1987, which would have driven the VIX (had it existed at the time) to an estimated 150? The election may be over, but that doesn't mean the market can't go down. And if it does, the VIX will go up.
Just the fact that VIX is in a 6 months low will give me a pause. It turns out to be a good trade for the past three days.
VIX low = cheap options, look for long puts for downside protection and watch them come into the money or increase with more Vega.