The only thing that rose last week on the VIX curve below was spot VIX.  The steep contango managed to influence the futures pricing versus spot and even with a small gain in VIX, all standard futures lost value last week.   Despite the divergence in performance between VIX and the futures, we are still in pretty steep contango as the market seems to be braced for some sort of fourth quarter surprise.


One trade popped up on Friday that appears to be looking for a spike in volatility over the next few weeks.  Despite VIX being higher on the day, someone chose to buy 6500 VIX Nov 18 Calls for 1.63 and then sell 6500 VIX Nov 25 Calls for 0.63 with a net cost of 1.00.  VIX over 19.00 is the goal for this trade if held to expiration, however we would expect the holder of this bull call spread to take some profits.