给肥哥壮胆!

Hoddy

Huge bet on spike in volatility note

February 27, 2014 4:16 AM


A huge trade is betting on a sharp move higher in the VXX volatility exchange-traded note.

Just shy of 300,000 options changed hands in the iPath S&P 500 VIX Short-Term Futures Note yesterday, more than twice its daily average for the last month. Topping the action were more than 30,000 March 80 calls, which saw big blocks bought for the ask price of $0.15 in volume that was 20 times higher than the strike's previous open interest.

The call buyer is looking for a spike in the VXX, which would require a large and sustained rise in the CBOE Volatility Index and its futures. The note, which is composed of the two nearest months of those futures, has not seen its price double since August 2011, when it climbed from $350 to above $900. (See our Education section)

The VXX was up 1.19 percent to close at $43.20 yesterday. It posted an all-time low just under $40 a month ago but had climbed up to $55 with the selloff in equities at the beginning of this month. Like the volatility index, the VXX tends to move inversely with equities.

chinesebuffet

胡币不需要壮胆！ 谢谢！

Elephant

肥仔，投降算了。