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Hey Traders,

Despite some jitters that still clearly exist in the market, traders are positioned in VIX for it to fall.

Let’s check out the action in the VIX to see why…

With December expiring today and settling at 23.15, traders moved right to January to start trading VIX options.

While volume was pretty light today, check out the action in the VIX options:

Puts outpaced calls by a pretty wide ratio.

Most of which was in January out of the money puts.  

The biggest print today was a HUGE put spread that went up:

A trader bought the 22 puts and sold the 19 puts at least 20,000 times.

There was also action on the 21 puts.

Traders continue to place big bets on the VIX falling back to 20 or even lower.

I tend to agree with them and put a trade as such in the Volatility Edge today.

The VIX light is RED.

Your Only Option,

Mark Sebastian

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