It’s a busy day in the CBOE Volatility Index (.VIX) pit Tuesday. The index, which lost nearly 2 points yesterday after the S&P 500 ticked just .15 points higher to close at 1,380.00, is down another .25 to 16.43 after SPX added 4.29 points today. In options action, a half million calls have traded on the volatility index, representing more than 2X the typical volume through midday and about 4X the number of VIX puts that have changed hands. The flow is mostly in the November (25.8% of the volume), December (22.1%) and January (40.5%) terms. 70,600 VIX Jan 25 calls changed hands ,including a Jan 25 – 35 call spread bought for 97.5 cents, 20000X. Dec 32.5, Jan 32.5, and Jan 35 calls are the next most actives. Upside calls seem to be the flavor of the day for VIX traders and one player is even showing interest in the Dec deep out-of-the-money [DOOM] 55 calls, which recently traded for a nickel 3668X. More than 17,000 traded on the day.
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.