The Week in VXST – 9/29 – 10/3

With the pressure on the S&P 500 VXST reached the upper teens last week before finishing the week lower.  At the peak VXST was up 29% on Tuesday.  It is interesting to note that the high for VXST was on Tuesday while VIX reached the high for the week on Thursday.  I would have guessed that VXST would have hit it’s highest point on Thursday if I only looked at the S&P 500 action for the week along with being aware that the monthly employment report was Friday.


The VXST curve settled down a bit to finish out the week and the curve has settled back into a fairly normal contango shape.  VXST and the respective futures may just be shaking off recent calls saying the stock market is done (at least to the upside) for 2014.

VXST Curve

There are more than two ways to skin a cat.  I don’t know where that saying came from and the visual has always made me a bit queasy.  However, it means there are more than two ways to do about doing something.  I picked up on this Friday as two bearish outlooks for VXST into the October 8th settlement were traded in completely different ways.  When VXST was at 14.21 someone came in and sold the VXST Oct 8th 15 Calls at 0.75.  A little later in the day, with VXST at lower levels, there was a buyer of VXST Oct 8th 14 Puts at 0.60.

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