iPath VIX Short-term Futures Fund (VXX) adds 52 cents to $19.50 and morning trades in the product include an Apr 19 – 21 call spread, sold at 60 cents, 15000X, to close a position on ISE. Data from the exchange confirm it’s a liquidating trade and, if so, it might offset a position from 3/23 when 14800 VXX Apr 19 – 21 call spreads traded for 37 cents. VXX is on a six-day 16.5 percent winning run higher and today’s spread trader is probably closing out the position on the view the recent increase in volatility presents an opportunity to bank a profit on the trade.
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.