With the recent return of volatility,?options traders think there’s more to come.?

Last week, the VIX rose?17 percent to 12.08 as well as a comparable one for European stocks–both rising to their highest levels in about six months, reported Bloomberg.?In addition, the ratio of?contracts betting that the VIX will increase versus a decline sits around?4-to-1–its greatest level prior to 2007’s financial crisis.?

Amid the volatility rebound, year to date,?the U.S. and European benchmark options gauges are at low levels not seen in seven-plus years as they’re both off?5
percent. But the VIX has increased from 10.32 since July 3 to?12.08.

At the time of this writing, the VIX is at 11.58, down 4.14 percent.?

As for the?VStoxx, which tracks options on the Euro Stoxx 50
Index, has increased to 16.34, up from June 19’s 12.71 level, which had not been seen since?2006.

In this new weeks, it also fell, hitting 15.54 (4.9 percent) at 9:32 a.m. London time.?

Randy Warren, who manages?more than $100 million at Warren?Financial Service and Associates Inc., said to Bloomberg,?”Fear always comes in waves. Over the course of 60 to 90 days, things could get pretty?ugly. You could actually see the VIX well into the 20s, 30s,?maybe even the 40s.”

As volatility re-entered the marketplace, the Standard & Poor’s 500 Index fell 0.9 percent on the week, while the?Stoxx Europe 600 Index sank 3.2 percent, the worst?declines in at least three months for each. Also taking place last week, Goldman Sachs Group?Inc. advanced its estimated resumption of Federal Reserve?interest-rate rises and the parent company of Banco Espirito?Santo SA, Portugal’s second-biggest lender, had missed a debt?payment, wreaking havoc on the markets.?