A broker in the CBOE’s Vix Pit bought 5,000 April 17 Calls for $1.725and possible more Upside in the Vix in the future. The brokerrepresents an order from a hedge fund, mutual fund, retail bank, orbig trader. Lets give a little breakdown of the trade.
Trade: Bought 5000 April 17 Calls for $1.725
Risk: $172.50 per 1 lot
Cash Outlay: $862,500
Lets Breakdown the Greeks of This Trade.
While the cash VIX was near 13.91, the April VIX Future was at 16.10, up 0.10 on the day. The 17 strike call is out-of-the-money, but maybe not that far.