VIX August 60 Calls Trade and VXX Puts? VIX, VXX, SPY #Volatility

Yesterday's action in the VIX (volatility index) futures options was interesting. The OptionMonster volatility sonar reported that 50,000 August 60 calls traded at 0.20. There was also activity in September (1x2). The action was "re-establishing protection in August and September". If SPY fails again at the $104-105 shelf and the $VIX spikes, the Aug VIX call and future will probably rise in value.

VXX is the ETF for near term futures on the VIX (a rolling long in the first and second month NOT spot Today there was an article in the WSJ talking about the VIX futures curve being in contango (July: 26.10, August: 29.50, September: 31.8, October: 33 and Jon Najarian mentioned that a trader bought August VXX puts yesterday, a 25-22 put spread I believe. The article said "a put in this instance signals expectations that the market will be calmer. Thus, this investor may have an outlook that is more like the VIX than the index's stormier futures". 

VXX is losing value today and the market is back in the green. The July VIX future expires tomorrow. So were those 50,000 AUG 60 calls for $1,000,000 simple disaster insurance in size before August expiration? The strike price is currently double the August contract. Watch $104-105 area on SPY in my opinion. In other VIX news look at this Barclays Rolls Out Inverse VIX ETN (XXV). See SPY, VXX and VIX Spot charts plus the volatility sonar video after the jump.

VXX (iPath S&P VIX Short-Term Futures ETN) -
VXX puts profit < $23.75 article said, trading @$26.32

VIX Spot is at 25, the calls are protecting VIX upside to 60


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