Volatility and the "natural" floor

VIX's "natural" floor

SPX is a trending asset, while VIX is a mean reverting asset. We have seen the SPX move higher, while the VIX refuses moving much lower. Volatilities at these levels have very limited downside. Using cheap volatilities for various strategies here makes a lot of sense. Replacing longs with calls, chasing further upside via calls or hedging downside exposure are all looking attractive.