The Week in VIX – 6/15 – 6/19

I promise there are two curves on the figure below showing the week over week changes for VIX and the active VIX futures contracts. All were higher with the exception of the December contract which finished the week unchanged. This just increased the ‘divot’ that we see each year with December volatility.

VIX Curve Table Corrected
Trading wise, someone used the Thursday dip in VIX to take a bullish position on volatility using July VIX Options. This trade took the form of buying the VIX Jul 17 Call for 1.10 and selling the VIX Jul 21 Call at 0.65 for a net cost of 0.45 and a potential reward of 3.55 if July VIX settlement comes in at 21.00 or higher.

VIX PO Corrected