On Tuesday, the theme in the ETF options world was “volatility” buying and selling, as opposed to outright “directional” bets, said Paul Weisbruch at Street One Financial.
“By this, we mean that market participants seem to be using options to get long volatility, in hopes that price gyrations in individual ETFs and indexes as well as the market on the whole will accelerate in coming weeks and months, which would allow holders of long options to participate in gains,” he wrote in a note Wednesday.
The VIX dropped back below its 50-day moving average on Wednesday.
CBOE Volatility Index
