It's worth a closer look at FB options flow to gain some insight into how the TWTR IPO is likely to play out.
Groupon is due to report quarterly results after the closing bell Thursday, and overall options flow seems to be expressing concerns that shares might fall on the results.
On the surface, the hefty trade in FB might seem like an outright bearish play.
As the demand for large institutional hedges has faded (for the moment at least), volume in the VIX trading pit has dropped off considerably.
Muddy Waters Research made a mess of NQ, sending shares to $10 from $23.
Bullish sentiment in AAPL seems quite high heading into today's event.
Jim Cramer is positive on AOL, and a massive, institutional trade echoes that sentiment.
This is how a massive VXX trade turned into an even bigger loser when looking at the options alone.
The whole concept of 'dynamically hedging your position' goes out the window in a gap like we saw with the early earnings release.
Trading in VIX products has been very heavy, but the term structure of the VIX futures market indicates an expectation that things will settle down by November.