November 60, 65, and 70 calls on the CBOE Volatility Index (.VIX) saw increases in open interest (7,900, 16,485, and 8,090 contracts, respectively). Some of that activity is due to butterfly spread trading. For example, at around 14:00 ET, a player stepped in and bought this fly 7,000 times for a 35 cent debit. This is a play on VIX moving higher and yields its max profits of $4.65 if the volatility index (futures) settle at 65 at November options expiration, which is Wednesday, November 19.
Category: All Indexes
About the Author (Author Profile)
Frederic Ruffy is a well-known trader, writer, and strategist who has spent years educating investors and creating intelligent, insightful, unbiased market observations that are frequently cited by the Wall Street Journal and other financial publications. As senior analyst, Fred provides frequent and regular notes and daily updates for activity of interest.