I watch all the unusual options activity and often watch the volume in the VIX to help my trading. Today, paper (hedge fund, mutual fund, retail bank, or big trader) bought 20,000 VIX May 18-23 Bull Call Spreads for $.42.
Lets break down this trade:
VIX cash at 14.70 and May VIX Futures near 14.88:
Bought 20,000 VIX May 18 strike calls
Sold 20,000 VIX May 23 strike calls for $0.42 per spread
Risk: $42 per 1 lot
Reward: $458 per 1 lot
Total Cash Outlay: $840,000
Greeks of this Trade:
example excludes transaction costs.