VIX finished the week at the lowest close since 1993, but the two lower closes came during a holiday week so I’m considering consulting with other VIX watchers with respect to if this is basically an all-time low. Note the dramatic move in the July contract that goes off the board on the open Monday.
The most exciting activity we got from VIX came around lunchtime on Tuesday. Many traders may have miss VIX running to the mid-11’s and the July contract trading around 12.50. At least one nimble trader pulled themselves away from Amazon Prime day shopping and caught a good purchase in VIX Put options. They managed to buy the VIX Jul 19th 14.00 Puts for 1.80. With VIX around 11.50 this trade had a break-even just above the spot index with just over a week to go until expiration.
This trade looked pretty good as of Friday with VIX down at 9.51 and the July contract finishing about a point higher. The bid side on the close for this option was 3.40 for a potentially unrealized gain of 1.60.