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Low VIX indicates market complacency, which somewhat reflects the fact that most market participants have little fear about the potential risks...
Under this condition, the option premiums are relatively low as well... Therefore, if the options writers try to collect too high of a premiums (meaning too close to the market), the probability of getting burned shuts way up...
In conclusion, be very wary and very careful during low VIX's, because the markets could move in all directions and have a habit of sneaking up on everyone...
One may rush to write CALL options ONLY when VIX goes extremely low into the single digits as the markets have a much greater tendency to go down fast than at other times…
Happy Trading!!!
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