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.