OptionsHouse

Options Trading News

February 12, 2009  Thu 9:46 AM CT

VIX: SEE CHART GET CHAIN FIND STRATEGIES

VIX Chart

The S&P 500 has dropped more than 2 percent, driving its volatility index back up more than 5 percent and above the VIX futures.

The VIX is up to 46.83 on this morning's drop in the SPX, which at 815 is pushing toward its lowest levels since Jan. 20. The 6 percent gain in the volatility index has it back above the February VIX future, which sits at 46.45. The spot VIX reading closed yesterday just below that future in what appeared to be a bullish sign but, as we noted earlier this morning, it did so on lighter volume.

The new VIX-based exchange traded notes will allow another way of looking at the VIX "term structure." While there is only a small amount of data so far, we will eventually be able to compare the relative values of the VXX short-term futures ETN and the VXZ medium-term note.

Currently that ratio is approaching its highest level. The only other time it was this high was on Feb. 2, when the SPX bounced off its low of 812 and rallied 60 points. This is not to say that will happen again, but the ratio should nonetheless prove useful going forward.

(Chart courtesy of trade MONSTER)

Share this article with your friends


Related Stories

VIX

Videocast: Selling high VIX strikes

January 30, 2015

Group One's Jamie Tyrrell says today's big volatility trades are selling this pop in the VIX, unloading the February 29 and 30 calls.

VIX

VIX drops as equities bounce back

January 30, 2015

The major equity indexes rebounded yesterday after the steep selloff in the previous session, and the CBOE Volatility Index dropped nearly 19 percent.

VIX

Videocast: VIX action 'wishy washy'

January 29, 2015

After the VIX soared late yesterday, Group One's Jamie Tyrrell says today's volatility trading is "wishy washy" as the pits try to decide which way the market is heading.

VIX

Videocast: April call spread in VIX

January 28, 2015

Low volumes persist in volatility trading, but Group One's Jamie Tyrrell says one trader is buying a VIX April 18/25 call ratio spread.

VIX

VIX rises as equities fall on earnings

January 28, 2015

Equity indexes lost ground after a slew of disappointing earnings reports but did finish off the lows of the session. The CBOE Volatility Index gained nearly 11 percent.

OptionsHouse

Premium Services

Archived Webinar

Option Money Machine Winter Classic

Education & Strategy

The rolling technique

In the January 7th edition of Advantage Point, we initiated the purchase of a second week-out GOOGL 535 put at...

View more education articles »