After showing some signs of life VIX fell back to a single digit closing handle three out of four days last week.  The curve shifted in a very parallel fashion as even the longer dated futures gave up some ground. 

VIX Curve 11242017

The trade of the week is a simple yet effective strategy.  ON Monday morning as VIX was trading around 11.20 there was a buyer of the VIX Nov 22nd 13 Puts for 1.70.  Remember VIX options are priced off the corresponding futures contract, but settle in a calculation of VIX.  I’m rooting for the trader behind this one to have held through expiration.  If they held to Wednesday’s AM settlement the payout was 3.26 for almost a double in two days.  It appears someone’s kid might be getting the GI Joe with the Kung Fu grip this year.  

VIX PO 11242017