Education

Volatility Up – But Few Bets It Stays There

VIX – I am amazed that despite the 1% selloff and pop in volatility, the spot VIX is EVEN with the futures. So, with the trillions of dollars flowing into and out of the stock and futures markets, we’re not seeing hardly anyone betting volatility stays here ($12.85). UVXY ProShares Trust Ultra VIX Short Term Futures […]

VIX –

I am amazed that despite the 1% selloff and pop in volatility, the spot VIX is EVEN with the futures. So, with the trillions of dollars flowing into and out of the stock and futures markets, we’re not seeing hardly anyone betting volatility stays here ($12.85).

UVXY ProShares Trust Ultra VIX Short Term Futures ETF surges

 

Our HeatSeeker shows call volumes surging in UVXY, particularly as the weekly 12, 13 and 14 strikes as the UVXY trades up 12.35% to $13.05 

 

In fairness, ahead of the 1st French elections we did see the UVXY trade to $22 before gaping lower from $19 to $15.88 after the elections. 

 

The call to put ratio here is 4:1

 

 

VXX – 

 

Surge in call trades in this vol ETN as well, as our computers show 2:1 calls to puts, but levels are barely elevated. VXX trades $14.51 and was at approximately that level for the past month, trading from lows of $13.85 to $18 in the past 30 days. 

 

137,000 calls to 71,000 puts