The S&P 500 gained 2.6% to begin 2018. VIX and the VIX futures curve reacted as one would expect with a dramatic drop in spot VIX and the futures following suit to a lesser extent.
Four seconds into the new year and the first sizable VIX trade was executed in the VIX pit. With spot VIX at 10.90 and the January standard (1/17) future at 11.35 there was a buyer of 500 VIX Jan 17th 19.00 Puts for 7.86 who then sold 500 VIX Jan 17th 9.50 Puts for 0.07. The net cost is 7.79 and a trade that makes money with January standard VIX settlement below 11.21. Profits are capped at 1.71 with VIX settlement at 9.50 or lower.