Volatility Traders Don't See a Turnaround By Rebecca Darst About this article: A wave of selling accompanied today's change in the nonfarm payrolls figure, which showed a horrendous hemorrhage of jobs last month, leading some market observers to cite jobs data as a lagging indicator and suggesting that a turnaround could be imminent (however nascent). The CBOE Volatility Index is up 3% at 65.56 at present, which seems to be a relatively restrained upside move given the circumstances, and it looks as though all the ingredients are in place for a breach of 70 by day's end. While market optimists are looking for signs of a thaw in coming months, VIX options traders so far are not -- the most prevalent options trade today is a volatility-bullish spread in January calls between strikes 65 and 75. This 3,000-lot spread was bought long for $2.25, according to our source at Trade Alert, and it suggests a trader looking for... Or, call us at 1-866-321-TSCM (8726) Monday-Friday, 8 a.m.-6 p.m. ET. Outside the U.S. and in Canada, call 1-212-321-5200.

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