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The CBOE S&P Volatility Index (VIX) dropped 8.9% on Friday, June 4, to 16.44. It’ up just slightly today to 16.73 (up 1.89%) as of 2 p.m. New York time.

That’s, in my opinion, an extremely low reading on the fear index considering how many potentially market moving volatility events we’ve got ahead of us over the next six months. (For a list see my Special Report: 5 picks and 5 hedges for a falling market.)

So today, June 7, I’m adding another Call Option on the VIX to my Volatility Portfolio on my subscription sites JugglingWithKnives.com and JubakAM.com. (A Call Option will deliver a profit if fear and the VIX climb.)

I’m taking advantage of the drop in the VIX to stretch the term of this option from the September 15 option that I added on June 1 to an October 20 Call. I’m leaving the strike price at 20.

I bought the September 15 Call Option with a strike at 20 on June 1 for $502 a contract.

Because of the pull back in the VIX today I’m able to buy an extra month of potential volatility on the October 20 Call Option with a strike at 20 (VIX211020C00020000) for just $540 a contract.

Adding the extra month of duration to this VIX Call Option allows me to buy exposure to the Federal Reserve’s September meeting, a key event for interest rates in 2021 and anticipated rates for 2022.

I own the September 15 VIX Call Option in my personal portfolio and I will be buying the October 20 Call, assuming they don’t run away from me, later this week.