VIX Non-Commercial Speculator Positions:

Large volatility speculators sharply pared their bearish net positions in the VIX futures markets this week, 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 -80,581 contracts in the data reported through Tuesday August 6th. This was a weekly change of 63,733 net contracts from the previous week which had a total of -144,314 net contracts.

The week’s net position was the result of the gross bullish position (longs) growing by 30,113 contracts (to a weekly total of 146,824 contracts) which combined with the gross bearish position (shorts) that decreased by -33,620 contracts for the week (to a total of 227,405 contracts).

The VIX speculators' position is of the Tuesday close and coincides with the volatility and risk-off sentiment of the beginning of the week (stocks down, safe havens up). The speculative bearish position had been grinding consistently higher and gaining for the previous nine of out eleven weeks before this week’s sharp turnaround. The current standing is now back down to it’s least bearish level since February.

VIX Commercial Positions:

The commercial traders position, hedgers or traders engaged in buying and selling for business purposes, totaled a net position of 85,853 contracts on the week. This was a weekly drop of -65,717 contracts from the total net of 151,570 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 19.67 which was a gain of 4.60 from the previous close of 15.07, according to unofficial market data.

*COT Report: The COT data, released weekly to the public each Friday, is updated through the most recent Tuesday (data is 3 days old) and shows a quick view of how large speculators or non-commercials (for-profit traders) as well as the commercial traders (hedgers & traders for business purposes) were positioned in the futures markets.

The CFTC categorizes trader positions according to commercial hedgers (traders who use futures contracts for hedging as part of the business), non-commercials (large traders who speculate to realize trading profits) and nonreportable traders (usually small traders/speculators).

Find CFTC criteria here.