Mike Khouw Comments On Bullish Bets In VIX

Mike Khouw spoke on CNBC's Options Action about bullish activity in the VIX index. He explained that there was an increased activity in options trading over the last few days and the traders were betting on a move higher in VIX. Khouw said that 2 times daily average call options volume was traded on Monday and the most active were the January 30 calls, which traded over 70,000 contracts. Traders paid $1 for them, which means that they see the VIX above $31 at the January expiration or 50 percent higher. When the VIX has been over 30 in the last 5 years the market fell well over 10 percent, added Khouw.