VIX Non-Commercial Speculator Positions:
Large volatility speculators once again added to their bearish net positions in the VIX Futures markets and pushed their short position to a seven-week high, according to the latest Commitment of Traders (COT) data released by the Commodity Futures Trading Commission (CFTC) on Friday.
The non-commercial futures contracts of VIX futures, traded by large speculators and hedge funds, totaled a net position of -116,694 contracts in the data reported through Tuesday, June 25th. This was a weekly change of -8,050 net contracts from the previous week which had a total of -108,644 net contracts.
The week’s net position was the result of the gross bullish position (longs) rising by 1,385 contracts (to a weekly total of 81,951 contracts) but being more than offset by the gross bearish position (shorts) which increased by 9,435 contracts for the week (to a total of 198,645 contracts).
The VIX speculative position has now gained for three weeks in a row and for five out of the past six weeks. The VIX standing hit an all-time bearish record of -180,359 contracts on April 30th but then speculators sharply reversed and retreated out of their positions (shedding approximately 90,000 contracts) in the next two weeks.
Recently, the bearish sentiment has picked up again and the overall bearish position is now above the -100,000 contract level for a second straight week and at the most bearish level since May 5th.
VIX Commercial Positions:
The commercial traders' position, hedgers or traders engaged in buying and selling for business purposes, totaled a net position of 126,509 contracts on the week. This was a weekly rise of 9,740 contracts from the total net of 116,769 contracts reported the previous week.
VIX Futures:
Over the same weekly reporting time-frame, from Tuesday to Tuesday, the VIX Futures (Front Month) closed at approximately $16.67 which was an uptick of $0.05 from the previous close of $16.62, according to unofficial market data.