It's sometimes viewed as an esoteric science that can only be mastered by some sort of trading guru. However, in small amounts, they can actually be a good tool for investors to use to complement or hedge their positions in equities and mutual funds, and activity in options can be a good predictor of what will happen in the equity markets. Many people are skeptical of the options market because the percentage of investors who lose money trading options is very high. They feel they can accomplish those same returns. Playing the options market is for hedgers and people looking to take a small profit.
Investors get themselves into trouble when they set their sights too high.
Volatility movements typically precede price movements. You saw higher volatility in January indicating probably more dramatic price weakness. You saw volatility starting to trend lower three or four weeks ago. So volatility movements precede price action on both indices and micro-stock issues. And those volatilities usually move up in front of an event, which sophisticated professionals know about.