VIX worked its way lower Friday as the stock market rallied.  We have grown accustomed to VIX below 10.00 and settlements below 10.00 as well.  However, for the first time I can recall, we had a VIX futures contract close below 10.00 with the December future that expires next week settling at 9.925.

VIX Curve 12152017

Thursday, with VIX around 10.05 and the Dec 27th future at 10.65 someone came in and put on a bearish VIX trade using the Dec 27th Weekly options.  They sold 300 of the VIX Dec 27th 12 Calls for 0.46 and purchased 300 of the VIX Dec 27th 14 Calls for 0.28 taking in a credit of 0.18. 

VIX PO 12152017

Note the dollar risk is fairly high compared to the reward, but this does require VIX settlement, in the middle of the holidays, to come in at 14.00 or higher.  Some trader believes things in the markets will remain pretty calm between Christmas and New Years and the availability of VIX Weeklys allows them an easy way to try to capitalize on that outlook.