Still Lovin’ VIX Calls

 

 

Speaking of the VIX, we don’t talk about trading in VIX products all that much any more. But hey they still have some action.

Customer bought 50,000 Jan. 32.5 calls for $1.15 on Friday as per Cuttone and Company. As they note, it’s consistent with buying they’ve also seen in SPX March puts.

Jan VIX futures trade in the mid 26′s, so the calls are about $6 OTM. Remember of course that VIX futures won’t move 1:1 with the VIX itself. And a after such muted volatility for so long, a sudden pop will initelly be treated like a one-off event and thus you’d really need a sustained move up there to get these pups truly in play.

I kind of think with VIX call or SPX put interest, it’s more about locking down portfolio gains than any sort of “smart money” speculation until proven otherwise.

 

 


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