The million-dollar bet that markets will get rocky

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Either the markets are about to get rocky, or one major trader is about to lose $184 million.

On Monday, the CBOE Volatility Index (better known as the VIX) almost instantly popped 10 percent off the opening print, even as things seemed relatively calm in the market. After all, the Chinese overnight data seemed OK, and Apple, a big component of the Nasdaq 100, was off to a roaring start.

However, it seems that a big institutional fund in the marketplace is getting worried. The trade consequently entered by this institution was sizable enough to force market makers to tick up their volatility expectations, and it has me concerned that these markets could get a little shaky through the end of the year.