*** VIX vol index was moving higher.........>

OPTIONS: *** VIX vol index was moving higher w/real vol delivering this morning,

climbed to 16.38, +.78 but has slipped back to 16.15 as markets. VIX option

volume light so far. Similarly, exchange trade FI option implied vol bounced on

the bear steepening in the underlying, but has stalled out w/futures sell-off

faltering, currently holding off session lows. Seeing two-way put flow, some

larger sales (-50k short Jun 70 puts, 2.0) taking profits, some early straddle

buying has evaporated. Bullish combos (buying call over risk reversals) seeing

growing interest, accts viewing underlying curve flattening as increasing chance

of economic slowdown, slower pace of or halting rate hikes and/or chance of

recession in 2019.