Sign up today for an exclusive discount along with our 30-day GUARANTEE — Love us or leave, with your money back! Click here to become a part of our growing community and learn how to stop gambling with your investments. We will teach you to BE THE HOUSE — Not the Gambler!

Click here to see some testimonials from our members!

VIX Calls Attract Attention

VIX Calls Attract Attention

Courtesy of Bill Luby at VIX AND MORE 

The VIX is up about 7.4% as I type this [yesterday], to 26.84, as the recent rally is finally beginning to shows signs of running out of steam.

Weakness and stocks and the rise in the VIX has generated some interest in VIX calls, with the September 35s, September 45s and August 37.5 calls attracting most of the action at the ask.

With today’s session not even at the halfway point, VIX call volume is running at a high level and the ratio of VIX calls to puts is considerably higher than the recent trend, as the chart below from WhatsTrading.com reflects. It is difficult to determine whether the VIX options activity reflects new speculation or new hedging activity, but my best guess is that a good deal of the activity is speculative.

Note that VIX options expire one week from tomorrow (see expiration calendar) and have a last trading day of one week from today.

Any close over 26.31 would mark the highest close in the VIX for a month, but it would take a spike all the way to 28.13 to bring the VIX to a level that is 10% over its 10 day moving average.

Vix chart

[source: WhatsTrading.com]


Tags: ,

Do you know someone who would benefit from this information? We can send your friend a strictly confidential, one-time email telling them about this information. Your privacy and your friend's privacy is your business... no spam! Click here and tell a friend!





You must be logged in to make a comment.
You can sign up for a membership or get a FREE Daily News membership or log in

Sign up today for an exclusive discount along with our 30-day GUARANTEE — Love us or leave, with your money back! Click here to become a part of our growing community and learn how to stop gambling with your investments. We will teach you to BE THE HOUSE — Not the Gambler!

Click here to see some testimonials from our members!