VIX index rallied but VIX call options fell, what is it implying?

[blnbr]

VIX index rallied over 5% this morning(until 10:30am ET) but both December and January VIX call options fell at the same time.

What is this implying? The index will fall to a new low in the following days? Or it's just the market maker playing a trick or else

 

[tradingjournals]

Quote from blnbr:

VIX index rallied over 5% this morning(until 10:30am ET) but both December and January VIX call options fell at the same time.

What is this implying? The index will fall to a new low in the following days? Or it's just the market maker playing a trick or else

How about those who sell covered calls? It could mean a move up in VIX but not a big one. Also, SPY went above yesterday's high. This may have made the VIX buyers think twice, or wait until a lower low in SPY.

 

[sle]

The options are priced off the VIX futures curve - the futures are down, the curve is flattening a little.

 

[tradingjournals]

Quote from sle:

The options are priced off the VIX futures curve - the futures are down, the curve is flattening a little.

Which futures are used? Is it like VXX?

Also are there people who buy volty on spy and sell it on VIX futures?

 

[sle]

Quote from tradingjournals:

Which futures are used?

VIX futures, see here: CFE

 

[tradingjournals]

Quote from sle:

VIX futures, see here: CFE

Cash 12.69, Nov 12.80, Dec 14.05.

VXX is still under the weight of the spread.

 

[sellindexvol66]

Quote from sle:

the futures are down, the curve is flattening a little.

good eye sle on the above in particular.

 

[sle]

Quote from tradingjournals:

Quote from sle:

VIX futures, see here: CFE

Cash 12.69, Nov 12.80, Dec 14.05.

VXX is still under the weight of the spread.

yes, but the changes are negative on most futures and positive on the index (and now on the front futures)

 

[xandman]

Is there a direct relationship with the volatility term structure and the futures curve?

is that the key difference in trading futures options and stock options?

 

[cdcaveman]

Quote from xandman:

Is there a direct relationship with the volatility term structure and the futures curve?

is that the key difference in trading futures options and stock options?

there isn't alot of difference trading vix options as oppose to trading vix futures.. long synthetic in one series and short synthetic in the next series , is the same as long the front future, short the next..

your going to look at where the futures are trading to see where atm is