$VIX January Calls Are Active (VIX Cash = 16.59)

Here's an update from the OptionMonster Volatility Sonar Report via optionmonster.com. The VIX is currently at 16.59 and bouncing around 3 year lows. The VIX (volatility index) measures the expectation of near-term volatility in the S&P 500 Index via its option prices. So, if I understand this correctly, traders via out-of-the-money VIX calls are buying (or hedging) the expectation of traders pricing in the expectation of higher volatility in the S&P in January.



Comments

  1. FYI:
    SPX Realized Volatility vs. VIX Spread is Insanely Insane


    http://www.optionpit.com/blog/spx-realized-volatility-vs-vix-spread-insanely-insane

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