At least one big trader believes we're going to see a large rise in volatility by April

At least one big trader believes we're going to see a large rise in volatility by April. The options world is abuzz over a massive purchase of VIX calls. To be specific, 40,000 April 22 calls were bought on the benchmark volatility index for a price of $1.28 each. That amounts to over $5 million in premium dropped on the trade. The position will be profitable if the VIX closes at $23.28 or higher on April expiration. That's almost exactly 50% higher than the current closing price of $15.54, and above the long-term historical average of roughly $20. The trade could be a speculative bet on rising volatility (the VIX could spike to $23 in about a day). Or, this could be a massive hedge against a long equity position. Either way, it's a newsworthy trade. (VIEW LINK)