This Week in VXST – 7/11/2014

VXST rebounded from the long weekend as would be expected and finished the week 30% higher. Part of this can be attributed to the holiday weekend impact, but not all of the price action came from Monday.

VXST PA

Note that the futures curve shifted higher last week which is good confirmation that the rise in VXST last week came from an increase in perceived short term risk by SPX option traders. As far as VXST specific trading the VXST 14.50 Calls that expire this Wednesday on the open have open interest of 1500 contracts and there are over 3,000 open VXST 22.00 Calls that have two days left to trade.

VXST

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Russell Rhoads, CFA

CBOE Options Institute

Russell Rhoads, CFA, is a Senior Instructor with the Options Institute at the Chicago Board Options Exchange. He joined the Institute in 2008 after a career as an investment analyst and trader with a variety of firms including Highland Capital Management, Caldwell & Orkin Investment Counsel, TradeLink Securities and…