OptionsHouse

Options Trading News

October 23, 2012  Tue 12:14 AM CT

VIX: SEE CHART GET CHAIN FIND STRATEGIES
Equity indexes staged a strong rebound into yesterday's close, finishing mixed though mostly unchanged while driving the CBOE Volatility Index lower.

The S&P 500 ended the day up 0.63 points at 1433.82, climbing for the last two hours of trade after hitting a low of 1422.06. Support and resistance remain unchanged at 1428 and 1465 respectively.

The Nasdaq 100 fared the best of the indexes, ending the day up 16.25 points or 0.61 percent at 2694.56. It rode the heels of Apple, which was up just shy of 4 percent and regained all of Friday's losses. The NDX has support at 2650 and resistance at 2715.

The Russell 2000 also followed a similar intraday pattern but was unable to make up all of the
morning losses. It finished the day down 0.48 points to 820.52 and sits at support at 820, with another level at 816, while resistance is at 846.

The lack of volatility had the VIX finishing the day at 16.62, down 0.44 points, or 2.6 percent. It climbed to 17.98 going into the last two hours but then slid from there.

The November VIX futures were down 0.30 points to finish trading at 17.30, while the December futures were down 0.45 points to 18. The term structure had been flattening out but widened with the final hour.

More than 710,000 S&P 500 Index options traded, with 445,000 puts. The VIX options changed hands 296,000 times, led by 216,000 calls. The VVIX Index, which measures the implied volatility of the VIX options, had been higher all day but finished barely down at 92.48.
Share this article with your friends


Related Stories

VIX

Video: Big call selling in volatility index

February 9, 2016

With the market "all over the map today," Group One's Jamie Tyrrell says traders are selling the VIX February 28 calls and the March 30/40 call spread.

VIX

Video: Call buyers chase spike in VIX

February 8, 2016

Group One's Jamie Tyrrell says traders are buying February calls in the VIX amid today's market drop, targing the 25 to 29 levels.

VIX

Video: Near-term VIX calls purchased

February 5, 2016

Group One's Jamie Tyrrell says volatility traders had been looking farther out but are now picking up February 28 calls.

VIX

Videocast: Huge VIX call spread sold

February 4, 2016

As the market continues to churn, Group One's Jamie Tyrrell says today's big trade is the sale of a VIX March 30/40 call spread 115,000 times.

VIX

Videocast: Big March call spread in VIX

February 3, 2016

As the market pulled back this morning, Group One's Jamie Tyrrell says a major player bought a March 30/40 call spread 150,000 times.

OptionsHouse

TRADING WEEKLY OPTIONS

The fastest money in the market
View full report »

Premium Services

Upcoming Webinar:

Using Options For Income

http://bit.ly/1nY1OKA

Jon Najarian and Adam Mesh of Options Wealth Machine discuss a detailed strategy utilizing credit spreads to generate income, and how any level of trader can use this simple trading technique.

Education & Strategy

Sweet Spot Exceptions

As discussed last week, when using the Stock Replacement Strategy to replace a stock position to trade direction, we want to use an option that has very similar characteristics to the stock. We talked about using the deep in-the-money, 80 to 85 delta option that is similar in the Greeks and has relatively little extrinsic value which tends to work against us in stock directional trading.

View more education articles »