Daily Options Report

Remember everybody speculating on cheapie VIX calls? That was so "August". "Puts" are the new "calls", at least today, as per What's Trading.

VIX below 20? One player might think so — they just bought 20K VIX Feb 20 puts for 50 cents. Looks opening.

That VIX you see on the board does not apply to VIX options. These puts are pretty far OTM right now as the Feb. future trades near 29.

The VIX itself has gone lower in stair step fashion since March. It gets comfortable in a range and sits for a while until it realizes it consistently overprices realized volatility, and then declines anew. I suspsect we have sat in the mid 20's long enough and are ready for another step down next expiraiton cycle. So while Feb. buyers will not give up the ghost so fast, I think it's reasonable to assume lower strikes are in play in the October cycle.