A hung parliament following Italy's general election, coupled with a strong showing for an anti-austerity party, conspired to send an index known as the global investors fear gauge soaring by a third on Monday – offering smart returns for those with long volatility positions.

As Financial News highlighted in the run-up to the elections on February 24 and 25, the chief risks associated with the poll stemmed from the divisive and unpredictable Silvio Berlusconi gaining a foothold in power and a strong showing for stand-up comic-turned-politician Beppe Grillo, whose party polled 25.5% of the vote.