Saad Ullah
⬤ The Cboe Volatility Index continues attracting bullish bets as traders stack up protection against potential market swings. During the latest session, more than $6.3 million flowed into single-leg VIX calls while the index itself traded around the mid-$14 range—still historically subdued territory for volatility pricing.
⬤ The lopsided options activity tells a clear story: call premium hit roughly $6.3 million compared to just $150,000 in puts. Traders aren't hedging downside—they're positioning for a volatility spike. Interestingly, the VIX kept drifting lower throughout the day even as call buying intensified.
⬤ This kind of flow typically shows up when investors want protection while stocks stay elevated. The focus on straightforward call purchases rather than spread strategies suggests traders are making direct bets on rising volatility. Flow data reveals repeated surges in call activity despite the underlying index remaining unusually quiet.
⬤ Heavy VIX call demand with volatility this low points to mounting caution hiding beneath the market's calm surface. Traders seem to be getting ahead of potential turbulence, recognizing that today's stability doesn't guarantee tomorrow's smooth sailing.
Saad Ullah
