Seeking Alpha

Bullish volatility traders place their bets

  • Call option bets on the VIX this week soared to a record high 8.4M contracts at the CBOE. "A lot are buying in size," says Mike Palmer, who sits at the center of the VIX pit. With volatility so low, speculators "can get a lot of bang for their buck." About 81% of VIX options trading yesterday was in call options.
  • After a 7.2% jump Thursday, the VIX is up another 14% today, but - at 15.67 - still well below the 20-year average of 20.50.
  • VIX ETFs: VXX, UVXY, TVIX, XIV, VIXY, SVXY, ZIV, VXZ, VIXM, VQT, CVOL, VIIX, XVZ, VIXH, PHDG, ACWV, XVIX, XXV, TVIZ, IVOP, VIIZ
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Comments (3)
  • idkmybffjill
    , contributor
    Comments (1718) | Send Message
     
    So to be contrarian, that means the VIX may drop next week...
    24 Jan 2014, 01:00 PM Reply Like
  • hummerh25
    , contributor
    Comments (99) | Send Message
     
    If you are looking for a 10% correction in the stock market, you could pick up 30% on the VXX
    24 Jan 2014, 03:07 PM Reply Like
  • DeepValueLover
    , contributor
    Comments (9718) | Send Message
     
    (XVZ)...take a look at this dynamic ETN.
    24 Jan 2014, 04:20 PM Reply Like
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