On October 14, 2026, traders on the New York Stock Exchange saw the Cboe Volatility Index (VIX) rise above 22 for the first time in four months, driven by a sell-off in AI-related stocks. Some trades indicate expectations for the index to climb further.
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Notably, one trader invested $1.7 million in 9,200 November 18, 20-strike calls and another $1.1 million in 12,500 November 18, 23-strike calls, betting that the VIX will exceed 23 by mid-November.
Brent Kochuba, founder of SpotGamma and CNBC contributor, commented on the rapid increase in the VIX and the high volume of options trading, suggesting that traders are adjusting their positions to hedge against a potential market downturn. He noted several trades exceeding $1 million in VIX calls for November.
The tech sector took a hit, particularly with concerns surrounding neo-cloud provider CoreWeave, contributing to a 2% drop in the Nasdaq, its largest decline since June 5th. CoreWeave's shares fell by 13%.
Among the most popular VIX contracts traded on Friday, nine were calls, with six having strike prices above the level the VIX fell to after its initial increase. Approximately $27 million was traded across these nine contracts, constituting about 36% of the day's total premium in VIX options.
Looking ahead, the market braces for a critical week as Tesla, SpaceX, and Meta prepare to announce their earnings.