VIX bucks norm again, rises with rally
Chris McKhann | email@example.com
The CBOE Volatility Index, VIX futures, and S&P 500 were all higher at the end of yesterday's session, suggesting that concern is creeping back into the market even as it rises.
The VIX ended the day at 15.99, up 0.04 points after falling to 15.48 just before lunch. The S&P 500 finished the day up 7 points to 1401, its first close above 1400 since May 2. The two indexes typically move inversely, but they have departing from that norm in the last two sessions.
The August VIX futures were up 0.80 points, or 4.75 percent, to 17.65. The September futures climbed 0.70 to close at 19.70.
The VIX options traded 269,000 contracts, 204,000 of which were calls. The iPath S&P 500 VIX Short-Term Futures ETN (VXX) saw more than 184,000 options change hands, but 110,000 puts dominated that activity.
Videocast: Traders shift as VIX drops
May 17, 2013
As the volatility index falls with today's rally, GroupOne's Jamie Tyrrell says traders are no longer looking for crash protection in May contracts and are buying June VIX calls instead.
Videocast: View of VIX before settlement
May 16, 2013
GroupOne's Dominic Salvino, filling in for Jamie Tyrrell, says VIX traders are targeting the 13 or 14 level ahead of May settlement next week.
VIX rises even as SPX breaks record
May 16, 2013
Equities posted more gains yesterday, while the CBOE Volatility Index bucked its usually inverse relationship with the S&P 500 and rose along with stocks.
Videocast: Low premiums in volatility
May 15, 2013
GroupOne's Jamie Tyrrell says VIX premiums are surprisingly low, indicating that traders are not expecting much of a move before next week's May settlement.