The market sold off sharply this week into correction territory on fears of the global impact of COVID-19. Options volumes were through the roof as expected as traders and investors rushed to get in and out of positions, including hedges. Volatility soared, with the VIX (S&P 500 volatility index) trading at 2-year highs.

A popular way to trade the VIX is through the iPath S&P 500 VIX Short-term Futures ETN (VXX). There were several massive trades in VXX options with some hedges being monetized or rolled out, while others were being set up for the coming weeks. One way to hedge against future downside moves, is to buy a relative inexpensive call spread in VXX.