Alright, I posted this once and got no response. I recorded Options Action on Cnbc last week. I just watched the segment again where they were talking about someone buying July and August vix call options. Did anyone see this show?
They said someone was buying the July and August vix call options. They said this wasn't speculation but this buyer was protecting their holdings.
Here's the part that kind of made my ears stand up. They said these options would pay only if the vix exploded to 60. It's now at 27 or so. The commentators said there would have to be a major "COLLAPSE" in the market in order for thses options to pay.
Is somebody really protecting themselves or do they know there's a good possibility of a "collapse" in the market coming.