How to Profit from Current Stock Market Volatility

In 2026, financial markets are dominated by uncertainty, notably due to the war in Iran, which has rekindled geopolitical tensions, provoking strong reactions on stock markets. The price of oil and gas has surged in a few sessions under the influence of fears weighing on global fossil energy supply.

When uncertainty intensifies, as is currently the case, volatility becomes more than ever a key parameter to monitor in order to analyze markets and adjust investment strategies in stocks.

Discover in this article and in video the definition and calculation method of volatility and its index, the VIX, better known as the fear index. We will also present the different financial products that allow trading and taking advantage of volatility in the stock market. Discover 5 solutions to consider for investing in the stock market by benefiting from volatility in 2026, to adopt according to your investor profile.

What is volatility? Video explanation

On financial markets, many factors explain periods of volatility, but there are also phases of volatility that cannot be explained rationally. Volatility is used as an indicator to measure the level of risk and it is characterized by two main factors: amplitude and time.

Amplitude corresponds to the gap between a low point and a high point:

In this example, the financial asset begins with a bullish peak at +45% before falling to a low of -30%, then rebounding. The amplitude between the high point (+45%) and the low point (-30%) is therefore high, at 75%.

Is this financial asset, in your opinion, volatile? Not necessarily, because it will depend on the time factor. If this 75% amplitude is achieved over a very long-term period of 20 years, the asset would not be considered volatile. Conversely, if this variation occurs in the short term, over a few months for example, then the asset would be considered highly volatile.

In conclusion, the volatility of a financial asset is characterized by the combination of time and amplitude of the asset’s price movements.

What is the VIX? The volatility index or the fear index

Very closely followed by analysts worldwide, the VIX is the reference indicator for measuring volatility in the US markets. It is an indicator calculated and published by the CBOE (Chicago Board Options Exchange), the exchange where the most options are traded in the USA, and this is no accident, because measuring volatility is crucial for options traders, particularly for calculating the option premium.

The VIX measures the volatility of the US S&P 500 index. The higher the VIX, the more volatile the S&P 500, and vice versa. Beyond the S&P 500, since US markets “often lead the dance” at the global exchange level, the VIX is often used as a reference for the overall volatility of markets.

For information, although less used, the European equivalent of the VIX is the VSTOXX (EURO STOXX 50 Volatility).

Over the past 20 years, the VIX has exceeded 80 twice: during the 2008 financial crisis known as the subprime crisis and in March 2020 during the COVID crisis.

The VIX mainly indicates the volatility of equity markets. However, equities are not the only asset class to experience volatility phases, and all other asset classes can be affected: bonds, commodities and agricultural products, derivatives, cryptocurrencies, real estate, artworks, luxury goods, etc.

For information, in 2011 the CBOE created a second index, the VVIX, which aims to measure the volatility expected on the VIX itself. An initiative that followed the fact that the VIX is now more than a simple indicator; it is also a financial asset increasingly traded with derivatives.

How is the VIX calculated?

The method for calculating the VIX is relatively complex and math enthusiasts can find the formula directly on the CBOE website.

For information, here is the mathematical formula :

What to remember is that the VIX is calculated by taking an average of the annualized implied volatility of call options and put options on the S&P 500. The higher the option prices, the higher the volatility.

The VIX is expressed in terms of the percentage deviation of the standard annual return of the S&P 500.

Implied volatility is a close approximation of historical volatility calculated directly from the movements of the S&P 500 index.

Here is the most common interpretation by analysts who use the VIX :

– Between 10 and 15, the volatility of the S&P 500 is low;

– Between 20 and 30, volatility becomes more pronounced, making the market nervous;

– Above 30, there is high volatility and the market may enter the “fear” or high anxiety zone.

You should mainly analyze the direction of the movement rather than the absolute value of this index. The higher it climbs, the more nervous the market becomes. Like all indicators based on averaging prices, remember that the VIX is not necessarily a good predictor of future movements, but rather a tool to observe the evolution of a situation.

What is the value of the VIX? History of the VIX Index from 1986 to 2026

Since 1986 and through the major crises of the last 30 years, the VIX has experienced extreme periods.

We can list 6 dates on which the VIX exceeded 50:

• During the October 1987 crash (VIX: 150)
• During the Russian financial crisis of October 1998 (VIX: 60)
• During the September 11, 2001 attacks (VIX: 58)
• During the Enron accounting scandal with its bankruptcy (VIX: 58)
• During the subprime crisis in 2008 (VIX: 95)
• During the Covid crisis in March 2020 (VIX: 85)

Chart of the VIX index from 2002 to 2026

How to trade the VIX? Our pro tips

As we’ve seen, the VIX is no longer just an indicator to help analysts gauge market anxiety, but is now a financial product that can be traded in several ways through various products, all accessible from top brokerage accounts.

VIX Index options

Investing in VIX options has been available since 2006 and serves, in particular, as a hedge within portfolios.

Two types of VIX options exist:

• Call: a buy option to anticipate a rise in the VIX
• Put: a sell option to anticipate a fall in the VIX

Thus, traders used to trading options can speculate on increases and decreases of the index. They can use the VVIX to aid their analysis and determine whether it is preferable to buy a call or a put, or whether the right strategy would be to sell a call or a put.

To negotiate VIX options, you can turn to stock brokers such as IG, Interactive Brokers or Saxo Bank, who specialize in options. DEGIRO is also a possible solution.

VIX futures contract

While options are perfectly suited to hedging or swing trading strategies, traders looking to implement day trading or scalping strategies can turn to VIX futures contracts.

Futures contracts offer sufficient liquidity and reasonably tight spreads to be used in many strategies, including very short-term (e.g., order book trading).

To trade VIX futures contracts, stock brokers such as Interactive Brokers, Saxo Bank or DEGIRO can offer favorable pricing.

VIX Turbo

Replicating VIX futures on the CBOE, turbos allow less capitalized investors to trade the VIX, with the caveat that the minimum amount on a turbo is much lower than on a futures contract. The turbo also allows the use of leverage for traders who are willing to take on higher risk.

Since turbos are exchange-listed products, you should normally be able to trade them with top-tier brokerage accounts such as Trade Republic, Bourse Direct or EasyBourse.

Which financial placements to profit from the current volatility? Top 5 placements according to Café de la Bourse

There are many placements allowing you to profit from volatility, available with the best online brokers. Here you will find examples of volatility derivatives, as well as specific assets enabling you to profit from volatility.

1. VIX ETF

There are ETFs that enable investing in the VIX. For example, the Amundi S&P 500 VIX Futures Roll Enhance tracker. The ETF’s index tracks movements in the VIX futures market of the S&P 500 volatility, traded on the CBOE in Chicago.

This ETF, which gathers over €179 million in assets, charges management fees of 0.60% per year.

It will be possible to buy this ETF with stock brokers such as eToro, Freedom24 or XTB. However, always check the availability of an ETF in advance, as brokers do not always offer all existing ETFs.

2. Volatility-focused UCITS funds

There exist UCITS (Organismes de placement collectif en valeurs mobilières) focused on volatility. Backed by expert fund management teams in this field, they aim to generate performance through volatility-based financial products.

As an example, Allianz Volatility Strategy Fund (ISIN: LU1597245650) can be cited.

3. EURO STOXX 50 Volatility Index derivatives

The EURO STOXX 50 Volatility Index, also known as the VSTOXX, measures the implicit volatility expected over the next 30 days for options on the EURO STOXX 50 index, the main benchmark for large eurozone equities.

In other words, it reflects the market’s expectations regarding future fluctuations of European stocks. It is the European counterpart of the famous VIX, often nicknamed “the fear index,” which applies to the American market via the S&P 500 and which we discussed previously.

Like the VIX, the VSTOXX is a useful tool for investors to assess the level of stress or uncertainty in financial markets. It can also be traded through various derivatives such as futures and options, offering professionals as well as savvy individual investors a way to hedge against volatility or to profit from trading purposes.

Asset-by-asset selection on a case-by-case basis can offer higher volatility levels than VIX options or volatility-focused UCITS and ETFs. Here are some recent examples worth noting.

4. Brent oil price

At the start of 2026, volatility in Brent crude oil prices has returned to levels not seen since June 2025, a period already marked by strong geopolitical tensions and exchanges of strikes and missiles between Israel and Iran, which had then shaken energy markets.

The joint military intervention led by the United States and Israel against Iran at the very beginning of March 2026 (an operation reportedly largely initiated by Washington) indeed revives tensions in a region absolutely strategic for global oil supply.

This situation is clearly reflected in the chart (below), as Brent had traded for most of 2025 below 75 dollars, but prices sharply accelerated higher with the onset of the first military attacks. The rebound in volatility is particularly visible with Bollinger bands widening significantly, signaling much larger price movements.

Another notable element: the presence of a gap (circled in orange on the chart). This phenomenon corresponds to a market open far from the closing price of the previous session. In a highly liquid asset like oil, this type of movement remains relatively rare and vividly illustrates the level of uncertainty currently dominating energy markets.

Graphical analysis of Brent crude oil price in 2026

5. Cryptocurrencies

Let us not forget cryptocurrencies, one of the most volatile asset classes at the moment, with price swings that have been very intense in early 2026.

Often perceived as an extremely volatile asset, Bitcoin is not always the most unstable asset in the crypto universe.

The ecosystem has expanded considerably in recent years, and many cryptocurrencies today show variations far greater than those of BTC. There are even times when Bitcoin demonstrates relatively modest price movements, notably during some calmer market phases.

But at the start of 2026, in a particularly tense financial and geopolitical context, volatility has clearly returned.

Between January 13 and February 7, 2026, Bitcoin fell by about 38%, a move that was particularly brutal. If we take a bit more distance, the correction even exceeds 50% from the peak near $125,000 reached in October 2025.

Nevertheless, BTC remains faithful to its reputation as an asset capable of rapid rebounds: between February 25 and March 4, 2026, Bitcoin’s price rose by nearly 18%. In other words, if Bitcoin is not always the most volatile cryptocurrency, the current context clearly places it among crypto assets with the most spectacular movements.

To invest in or speculate on Bitcoin, you will have access to BTC and other cryptocurrencies available from top crypto platforms such as Bitpanda and Binance, for example.

Graphical analysis of Bitcoin price

As mentioned above, other asset classes can also be subject to volatility such as bonds, derivatives, real estate, or more specific markets like art, luxury, wine, etc.

However, investors wishing to use a specific financial asset to profit from its volatility, such as a historically volatile stock, will need a very high level of expertise, because past volatility does not guarantee future volatility!

In addition, you will need to position yourself in the right direction! Therefore, you must be very cautious with this highly speculative approach.

All of our information is, by nature, generic. It does not take into account your personal situation and does not in any way constitute personalized recommendations for executing transactions and cannot be equated with financial investment advice, nor with any incentive to buy or sell financial instruments. The reader is solely responsible for the use of the information provided, with no recourse against the publisher of Cafedelabourse.com. The publisher cannot be held liable for any error, omission, or ill-timed investment.