Hitting "natural floor" volatility as inverse fear kicks in

The Market Ear Picture

Natural floor

Volatility is a mean reverting asset. The most recent spike is gone and we are approaching some sort of "natural floor". We are not saying volatilities must spike from here, but we are approaching levels of volatilities where there is little further downside. Using relatively cheap optionality here is attractive. Replace longs with cheap upside calls or call spreads. Hedge the long book with downside hedges etc.