This year, the market swings have been bigger and faster than Tarzan on a tear. But, the key is understanding how to use this volatility and options to make money when the market screams up or down.

The first key is measuring the market's volatility.

The biggest indicator of this is the CBOE Volatility Index (VIX), which nearly doubled its former highs recently. Investors fell off their seats watching the exponential growth in the VIX and other indicators, and they're not sure how to get up off the ground. Or whether they even want to.

What started as a fundamental breakdown in the market has rapidly expanded, mucking up the technical picture in such a way that average traders can no longer rely on technical "signals" to lead them to opportunities. The technical noise has been brought on by several factors, including oppressive volatility and escalating prices.

All of this begs the question, are we closer to a bottom or top? Despite several triple-digit losses on the Dow even after the staggering drops, we say we're nearing a bottom.

There's a catch, though.

The VIX Rub

For all of the signs of pessimism that we're seeing, we have to remember that the market should be scaring investors silly. We got a pre-election rally, where the markets really seemed to buy into the messages of hope and better times ahead…and then the hangover hit, and focus shifted from hope to the hellacious economy.

It's no wonder traders' heads hurt, given the volatility of this market. (See also: "9 Tips for Options Trading Success.")

One of the most common measurements of volatility is…