from CNBC:
The stock market's main fear gauge moved past a key level on Monday, indicating possible troubles ahead for the market.
And one options player with deep pockets is making a big bet that volatility will increase sharply, making this a tumultuous summer.
The Chicago Board Options Exchange Volatility Index, or VIX, moved past 30, a mark it hasn't closed above since June 4. A VIX [VIX Loading... () 
] reading of better than 30 generally indicates high volatility that usually accompanies stock market drops.
Following suit, stocks lost more than 1 percent.
The joint moves in the VIX and stocks come just a few days after a big investor bet on the VIX caused tremors in the options market.
One trader on Thursday bought 20,000 July VIX calls at the 45 strike and sold 55 strike calls for an overall premium of 42.5 cents in a trade that cost about $850,000 to execute. The net impact is that the VIX would have to beat the 45.42 level by the July expiration for the investor to make money. The VIX hasn't been past 40 since April 21.
"The last few weeks we've come under 30 and we've been under 30 as investors became more sanguine in their approach," said Andrew Wilkinson, senior strategist at Interactive Brokers. "This was a standout trade that went against the grain."
While there would be no direct correlation between such a huge trade and the actual VIX movement, the bet could be indicative of a shifting mood...
"I would say the market's way too sanguine. It's pricing in way too much of a recovery when we haven't got the growth to back it," Wilkinson said. "It's somebody pitting his wits against the rest of the market. My opinion is it will probably look good in a few weeks' time."
