Huge put sale counts on higher VIX

optionMONSTER

An enormous put sale is looking for the CBOE Volatility Index to rise in coming months.

optionMONSTER systems detected the sale of 57,892 VIX September 14 puts for $0.54 yesterday. This is a new position, as the volume was above the strike's previous open interest.

The put seller is betting that the VIX will be above the 14 level at expiration in mid-September. VIX options are priced on their respective futures. (See our Education section)

The September VIX futures finished the day at 15.90. The August futures closed trading at 14.50, while the spot volatility index ended the session at 12.97. The VIX is right in the middle of its recent range between 14 and about 12. 

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