VIX Calls or S&P 500 Puts? Debate Rages On as Vol Spikes Fade

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When it comes to hedging, should investors favor VIX calls or S&P 500 Index puts? The question has become central as spikes in the Cboe Volatility Index have grown increasingly ephemeral.

Consider what happened last week, when the gauge surged more than 2.3 points intraday on two instances as concern increased over the escalating conflict between Russia and Ukraine. By the close, the VIX was up less than 1 point.