BGC's Woodard: VIX Options Traders Could Get Used To This

​Since the start of the last quarter, traders have been treated --or subjected, depending on your positioning-- to three sharp rallies in volatility that were reversed nearly as quickly. First in the middle of October, then in mid-December and now, arguably, at the start of January. The corresponding moves in equity index prices have the shape of what technical analysts call “V-bottoms,” and investors have been surprised not just at the suddenness of market drops but equally by the pace of recoveries.