Brian Stutland Sees Unusual Options Activity In VIX

On CNBC's Options Action, Brian Stutland spoke about a bullish trade that he noticed in volatility index on Tuesday.

A trader bought 20,000 contracts of the August 18 / 20 call spread for $0.08 on a day when VIX recorded more than 12 percent single day gain. The trade breaks even at 18.08 and maximal gain is $1.92 if the VIX trades above 20. Stutland thinks that traders are getting concerned about where the market is heading and another leg down could lead to a spike to 20 in the VIX.