Volume was light in options trading today. Volume was light in stock and futures trading as well. Yet there was one odd creepy move today in VIX futures. It started with a large buy order. A customer bought 100,000 of the VIX Dec 27 calls. From then on the VIX curve was bid. Even as the VIX was flat the VIX dec contract was up more than 3%. Quote the move on a day the S&P 500 was down 2 points. Notice the 2 day shift.
Huge rallyin the SPX today. Its currently acting like its abou to make a run at the 200 DMA again. Yet, notice despite this rally being bigger than any of the sell off's last week, VIX barely budged (even if the futures did drop nicely). In fact, SPX closed at the highs of the day, and VIX was well off the lows of the day. Additionally take a look at the chart below.
For those VIX watchers today was interesting. The market held a tight range and yet VIX moved higher. Infact over the last couple of weeks that has been the case, IV rallying, HV falling: