The return of market volatility in October has once again reminded investors that risk and fear are part of the journey when investing in stocks. The SPDR S&P 500 ETF (NYSE: SPY) has dropped more than 5 percent this month and is down over 7 percent from its all-time closing high.
While that may not seem like a vicious drop to some, it has created a new dynamic on Wall Street that looks to capitalize on investor emotions.
More specifically, exchange-traded products that track the CBOE VIX Volatility Index (VIX) have become popular destinations for traders looking to profit from this the unpredictability of stocks.
According to the CBOE website, the VIX “is a ...
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