CBOE Volatility Index (.VIX) July calls are active, as it appears that an investor opened a new bullish position in the volatility index: Buying the 40 – 50 – 60 call butterfly 10000X Tuesday morning for $1.00. VIX is up .28 to 34.81 and, if bought, this spread has a max payoff of $9 if VIX (futures) settle at 50 at the July expiration (77 days). Another investor bought the July 37.5/May 35 call spread 10000X, perhaps a roll (closing May to buy July) or betting VIX (futures) will stay below 35 over the next 14 days before rallying from that point forward.
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.