Binary Options Trading Monitor for August 4, 2010: Upside Call Buying in the VIX

August 05, 2010   admin   No comments

CBOE Volatility Index (VIX) – Bullish: Over 50k September 45 calls were purchased today in the VIX with the buyer paying $0.50 per contract. With VIX trading around 22, the volatility indicator would need to more than double by September expiration for these calls to yield a profit IF the investor held on the position. This trade, however, looks to be the act of someone playing a short-term spike in the VIX, possibly on the back of jobs numbers due out over the next couple of days. This trade could pay off handsomely if the VIX surged on Thursday or Friday, or in other words, the market collapses before the weekend. Just a short-term observation that could come in very handy for binary options traders looking to play short-term movement in the VIX. VIX binary options can be traded on the Anyoption platform.

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