Options are of one of the most innovative and important investing instruments that have ever been created by the investment community, but options are also widely misunderstood by the public at large.

The VIX. The Volatility Index. The Fear gauge. We see that it sits at 14.05, near the lowest levels of the year. This makes many seasoned options traders nervous. The red lights are flashing. Why? Complacency in the market is a very dangerous sentiment and many believe that the markets are whistling past the graveyard.