TradeAlert ยท Couldn't we all use some stability into early 2021. Massive trades in Cboe VIX index open Feb and March ratio spreads in anticipation of volatility reversion. Spot VIX little changed near $26.70 this morning and longer-dated futures relatively flat near 27, with puts leading calls 400k to 100k at 11:30am ET after two ratio spreads of identical size printed within seconds of each other as auctions in the complex order book. First was the March 17/21 1x2 put spread bought for a debit of 84c, initiator buying 59757 March 21 puts for $1.74 to sell 119514 March 17 puts 45c. Next is the same trade in the Feb term- initiator buying 59757 21 strike puts for 1.54 to sell 119514 17s for 35c, also a debit of 84c. All legs open, with the total premium outlay near $10M suggesting a view that gains if volatility drops back toward the long-term average level, at which point the long 21 puts would see gains exceeding the short 17 strike losses. Potential profit on the position tops out near $36M with settlement at the 17 strike on both dates