With the CBOE Volatility Index (VIX) trading at inflated levels compared to where it was just 10 trading sessions ago, investors who may want to play a potential rebound, may find call options, and options in general, at significant premiums to where they would normally expect the options to trade.

This is because the market is continually building and re-building estimates of implied volatilities versus actual historical volatilities and the prices of options are not only determined by the price action of the underlying, but also tied to how volatility on the whole is acting across sectors and markets.

That said, those who have been short into this recent weakness and are looking to potentially lock in or hold recent gains, and those looking to benefit from a potential short term rally, may look to leveraged “bull” products as short term hedges or trading from the long side.

One such is Direxion Daily Large Cap Bull 3X Shares (NYSEArca: BGU), which aims to deliver three times the daily returns of the Russell 1000 index.

Investors should note that these daily leveraged products employ a “daily” reset of the leverage, so returns will be outsized in a unilateral trending market, but the overall returns will suffer if we enter a choppy market from a day to day standpoint.