Stock indices have seen very low volatility in the past few weeks. 

Some attribute this to summertime trading, though others think it is a result of the extreme volatility seen post-Brexit. And there is another school of thought that it is a simply normal mechanism of the markets to rotate between periods of high and low volatility.

Many traders in the financial universe like to day trade, but very few succeed. There is an alternative strategy, however, that traders can use that works better when volatility is low.

The strategy is the mini S&P 500 weekly options. When volatility is low, try buying puts or calls with seven days of expiration left because the premiums are relatively low and traders can buy options that are right at the money for a cheap premium.

Learn more about future options here.

This is a good way to try and speculate on the direction that a trader thinks the market is going. Because the trader is buying premium as oppose to selling premium, the risk is limited to the premium paid, plus the cost of the trade/ fees.

Although the theory of most professionals that selling premium is valid, it makes sense to buy shorter-term, cheap premium when volatility is low.

Take a look at weekly S&P 500 chart below, along with a screen shot from my quotes and charts to get a feel for the cost of the options and the market behavior. The money options are going for about $350 apiece.

Those not familiar with the risks associated with futures trading and/or options on futures, should visit our broker assist services and get help creating a trading plan.

This article is commentary by an independent contributor.

Trading commodity futures and options involves substantial risk of loss.

Past performance isn't necessarily indicative of future results.