One more VIX hypothesis (correct me if wrong)
VIX rising (& above a certain threshold) => Puts likely to be more expensive, Calls likely to be fairly priced to underpriced => Options strategy involving selling Puts &/or buying Calls likely to give best returns.
Converse for VIX falling (& below a certain threshold).
However defining the 'threshold' might be a problem as of now due to paucity of data.
Regards,
Kalyan.
VIX rising (& above a certain threshold) => Puts likely to be more expensive, Calls likely to be fairly priced to underpriced => Options strategy involving selling Puts &/or buying Calls likely to give best returns.
Converse for VIX falling (& below a certain threshold).
However defining the 'threshold' might be a problem as of now due to paucity of data.
Regards,
Kalyan.