A lot of traders are starting to eye the VIX as oversold, after being overbought just a week or so ago, it could be due for a bounce:
Oh, sorry, that was the analysis from Q109. Here's what happened after that:
Overall, we're still in a downtrend when it comes to vol. The actual volatility in the indicies does not match up to what the options are pricing in right now. And we're still seeing 52-wk lows being put in on individual vol across the board.
My bet? I'll stay away from buying vol on the indicies (unless I'm playing directionally) and maybe pick up some individual names. Double calendars right now work well if you want to reduce your basis in a straddle or strangle.