Just a quick note, on the Barron's column about the VIX options. The column noted the unusual buying of VIX calls last month and goes on, "To illustrate how the VIX calls are meant to work, Briere Gilbert points to contracts with a sizable amount of open interest -- the March 18 calls. About 17,000 of these were bought for 25 cents apiece in early February, she says, and following the stock market's slide Tuesday, they were offered at about $1.05 -- a return of about 320%."
Indeed! Last week was a great week. The unusual March 18 VIX call activity was noted on this blog on Friday February 9th! which strangely was the day I bought them myself. Incidentally, open interest on the March 18 calls more than doubled Friday to show open interest this morning of over 42k contracts. Those folks are a bit late, but I still feel that it is quite possible for the VIX to break last year's highs given the severity of factors involved with this year's market decline.
The Barron's article notes that VIX calls are not for everyone which is a good point since they do not behave the same as SPY calls, etc.