VIX trading patterns paint a cautious picture that is at odds with the fear gauge’s superficial message that investors aren’t concerned about stock risk.
With the VIX around 15—a level that suggests little to no fear about the future—investors have bought 155,000 VIX July $23 calls, 70,000 July $27 calls, and about 140,000 August $20 calls.
The trading patterns indicate that institutional investors are hedging their portfolios just in case the stock market sinks and the VIX surges.
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