“When the VIX was still in the 17 range a few weeks back, we saw put buyers in VIX options, basically expressing the sentiment that they believed volatilities in the marketplace would taper off, and these options trades in hindsight were obviously dead wrong after the short and significant spike,” said Paul Weisbruch at Street One Financial in a note Friday.
“We will continue to look to the options markets for further indicators of sentiment going into the weekend,” he said.
iPath Long Enhanced S&P 500 VIX Mid-Term Futures ETN
Chart source: StockCharts.com.