CBOE Volatility Index (.VIX) is up 1.53 to 15.91 and well off session lows of 14.27, as the S&P slips in the final half hour and loses 7.5 points. Meanwhile, Oct 30 and 35 calls on VIX are today’s most actively traded options contracts today. More than 90,000 traded in both. The activity include an Oct 30 – 35 call spread bought for 15 cents, 17000X and for 14 cents, 16500X. And this morning, an Oct 25 – 35 call spread was bought on the volatility index for 37.5 cents, 10000X. Total volume in the VIX pit is 475K calls and 86K puts. Some players seem to be positioning for a dramatic spike in the index between now and the Oct expiration, which is just 36 days for VIX options.
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.