The CBOE Volatility Index (.VIX) is slightly lower today, to 20.14, as recent market volatility has mellowed. However, one large block of options traded on the CBOE suggests a view things may heat up this fall. 42 minutes into the trading day, an institutional player bought 24,000 of the November 25 calls for $2.00 a contract. Reaching the breakeven level of 27 VIX would correspond to market concern levels seen only a dozen times in this volatile year-to-date.
Category: All Indexes
About the Author (Author Profile)
Henry Schwartz is the president of Trade Alert LLC, a provider of real-time options analysis tools to leading Wall Street firms. His systems analyze hundreds of thousands of transactions per second to help professionals identify and interpret market activity in real time, supporting informed trading decisions and intelligent idea generation. He has held institutional trading and management roles with Bank of America, Bear Stearns, Salomon Brothers and the Hull Group, and made markets on the CBOE and AMEX floors in the US, and EUREX and MONEP overseas. Prior to founding Trade Alert, he led the electronic market-making group at Bank of America coincident with the launch of the International Securities Exchange. He received his bachelor’s degree in Economics from the University of California, San Diego and his MBA from NYU’s Stern School of Business.