CBOE Volatility Index (.VIX) $15.28 +1.73%

| August 22, 2012 | 0 Comments More

VIX, which jumped a point yesterday, is up .21 to 15.23 as the S&P 500 falls in mid-morning trading and heads lower for a second day. After suffering its worst loss in nearly three weeks Tuesday, the S&P 500 Index is down 4 points to 1,409.17 Wednesya morning. One player in the options market doesn’t seem to expect a dramatic increase in volatility, however, and today sold 10,678 Nov 26 calls on the index at $2.65 and sold 10,678 Nov 27 calls at $2.43, to buy 21,356 Oct 20 puts for $2.20 (sold the Nov 26-27 call “stupid” spread and bought 2 Oct 20 puts — 11K vs. 22K). It might close.

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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.