Monday, June 16, 2014

Someone Is Loading up on $VIX Upside Calls, Market Is Exhausted (June 16, 2014)

Someone saw the move in the sunspot cycle and decided to buy VIX upside calls in size! But seriously, based on my research and indicators, I think the market is extremely exhausted and could easily correct on more Fed action or talk, a spike in oil prices because of the instability in Iraq, or if negative news starts to spread in the credit market (read this Bloomberg article on subprime auto loan default rates).

According to Jamie Tyrrell of Group1 Trading, a total of 200,000 July 17 calls were bought during the last three trading sessions. The video below is courtesy of the optionMonster Volatility Sonar Report. The volume could be part of huge option spreads, but the activity is still interesting.


Date: June 16, 2014 on Youtube

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