Action From the VIX Pit

The CBOE Volatility Index (CBOE: VIX) spot price is trading down 3.8% this morning as the S&P rallies over 19 points. The front month contract is down 4.5% to 23.15 though, trading down 1.10. Jan. and Feb. futures are also selling off a bit as well, down to 26.15 and 27.20, respectively.

One large player looks to be buying crash protection in the Dec. contract in the form of a 1x2. 28,000 45 calls were bought and 56,000 calls sold. This is more than likely a hedge against an existing position in some other asset class. I am bearish on vol over 28 for Dec.