Market volatility is currently low, with the VIX Index closing at 14.75, towards the lower end of the range for the year. Traders are looking at a long call butterfly using VIX options to profit if volatility rises next year. The trade involves buying a 15 strike call, selling two 20 strike calls, and buying one 35 strike call for a cost of $250. Potential gains of $750 can occur if VIX closes at 25 at expiration. This strategy offers asymmetry in a low-volatility environment and acts as a tactical hedge for equity risk exposure. Remember, options are risky and can result in a total loss.

Read more at Barchart: Using VIX Butterflies as a Tactical Volatility Hedge