CBOE Volatility Index is up .33 to 21.47 and has now rallied 25.5 percent since Feb 3. Recent options trades on the index include a Mar 20 – 23 (2X1) put ratio spread, bought for an average of 57.5 cents, 5000X. It’s possibly closing or a position adjustment, as open interest is sufficient to cover in both contracts. Or, the spread is perhaps a new position and a bet that the index will settle around 20 at the March expiration (33 days). VIX settlement for Feb yesterday was 20.44.
Category: All Indexes
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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.