Brian Stutland's S&P 500 Trade

On CNBC's "Options Action", Brian Stutland spoke about recent spike in volatility.

He said that VIX spiked over 45 percent in a week and he sees that as a buying opportunity. He explained that after such a move in VIX, the average return in the S&P 500 was 2.5 percent in 4 weeks and 4.3 percent in 12 weeks. The worst move was around 9 percent, so this trade is not without risk, added Stutland.

See Also: Is Another VIX-Driven Air Bubble Bursting?

He would be a buyer of the S&P 500 at $2,815. If the stock drops below that price level, he sees a potential drop to $2,715.