$VIX call prices double in days

Bullish bets on the CBOE Volatility Index have doubled since they were opened just three sessions ago.

On Dec. 13, Investitute’s tracking systems cited the purchase of 22,900 23January $30 calls in one print for $0.51. There was no outstanding open interest in the contracts before the trade, indicating that this was clearly a new position.

Those calls traded for as much as $0.99 this afternoon, about twice the purchase price. The underlying rose 22.81% in the same time period, underscoring how options can far outperform their underlying shares.

Long calls lock in the price where investors can buy a stock, letting them position for a rally at limited cost with the potential for significant leverage. They carry less risk than owning shares because the most that can be lost is the price of the options no matter how far the stock might fall.

VIX rose 16.18% to 25.13 today. The index, which does not have a dollar value and trades inversely to the S&P 500, has remained elevated in recent months as investors seek to find direction amidst a backdrop of trade and other asset class uncertainties.