[MoBattah]

If you had all the time in the world, I'd watch the VIX. When it spikes, buy the XIV (inverse). It's practically guaranteed to increase in value throughout the day, volatility can't stay in a spiked state.

[superbrama]

This is not good advice. You can’t predict how much we will drop next time on stocks and how the VIX may be affected.

We are in a long term contracted state of volatility. Professionals who understand how to manage risk may make the trade(s) that you’re suggesting.

[spondyl]

Just to clarify, this is the CBOE Volatility Index?

http://www.cboe.com/products/vix-index-volatility/volatility...

[MoBattah]

Yes. You cannot trade an index but there are financial instruments which do their best to mimic it.

VXX is an ETN that's long on the VIX. And XIV is an ETN that is short on the VIX.

ETNs have their own precautions to take into account.