The reasons for the low volatility and how to play it

The VIX reset

Zoom out and you see that VIX has spent a lot of time in the 12-16 range over the past 15 years. We saw low teens VIX, and even sub 10, during parts of 2017. VIX around 12 isn't far from the "natural" floor, but we can stay low for extended periods of time.