VIX Trader Drops $17 Million on Bet That Eerie Stock Market Calm Won’t Last
- Unclear if trade is bearish bet or a portfolio hedge
- VIX hasn’t traded above the 17 level since early November
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A trader snapped up call options tied to the Cboe Volatility Index, positioning for a pickup in stock market swings within the next month.
A trader bought about 250,000 call contracts on the VIX Index with a strike price of 17 that expire on Feb. 14. The trader spent about $16.7 million in premium, with each contract costing between roughly $0.63 and $0.67. The VIX hasn’t traded above the 17 level since early November.