Having been in a low Vol Environment for a while, I believe that this bounce off of the S2 intraday today, can be a potential low for the index.
I have chosen a synthetic long position to play this out, over the next 60 days.
More specifically, I sold the Nov 2018 14/12 put credit spread for $1 per contract and bought the same expiration 15/17 call debit spread for $0.50 per contract, in one order. This gives me a 2R (2 times the risk I assume in potential profit), since I can lose $0.50 for every $1 I can make, as my max profit.
I will close my position when any one of the following conditions come true:
1)My position gets to $0.90 per contract
2)The VIX reaches 20 (as this is a Fib level that will act as a resistance point, or
3)The spread gets cut in half, or $0.25 per contract.