VIX is up, down, up and back down this morning — possibly being influenced by the expiration. However, June options on VIX expire next Wednesday. The “fear gauge” is now down .39 to 21.29 after reaching a morning high of 23.90. Noteworthy options trades on the index include a seller of 120,000 VIX June 19 puts, including 82,000 at 7.5 cents and 3,000 at a dime per contract, according to a source near the pit. Open interest in the VIX Jun 19 put is 176K and the largest in the product. So, today’s put selling might be liquidating trades on the view that VIX isn’t likely to settle below 19 next Wednesday, after the Greek elections and ahead of the Federal Reserve’s interest rate announcement Wednesday afternoon.
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.