VIX dropped a little as the equity market did a whole lot of nothing last week.  We retired the August contract on the open Wednesday morning and September took over as the front month.  With time to go to expiration (this is actually a five-week cycle) everyone seemed to notice the steep contango again.  What is interesting below is the behavior of the curve beyond October.  November and beyond gained a little ground despite all the contracts moving up in the pecking order of expirations.

VIX Curve Table

At least one trader decided that there is a possibility of higher volatility over the next few weeks.  In a rarity there was a fairly large out of the money call buyer in the market early Friday.  With VIX a tad over 12.00 a trader purchased 60,000 VIX Sep 25 Calls in three lots paying 0.29.  The September VIX futures contract was trading at 14.80 when this trade came into the pit as well.