OptionsHouse

Options Trading News

November 9, 2012  Fri 1:15 AM CT

VIX: SEE CHART GET CHAIN FIND STRATEGIES
The major equity indexes all closed at their lows yesterday, each losing more than 1 percent, but the CBOE Volatility Index and its futures were also down.

The S&P 500 fell 17.02 points, or 1.22 percent, to 1377.51--its lowest close since Aug. 2. The SPX had climbed above 1400 at the open but declined for the rest of the day. Resistance remains at 1433, while support is at 1365.

The Nasdaq 100 followed the same path, initially climbing above 2625 but ending the day at 2572.57, down 40.12 points, or 1.54 percent. It will likely face a first level of resistance at 2651, while support remains at 2550.

The Russell 2000 gave up almost 11 points to close at 793.65, down 1.35 percent on the day. It has resistance at 825 and support at 775.

The VIX was also lower on the day, departing from its usually inverse relationship with the S&P 500. The volatility index finished at 18.49, down 0.59 points, or 3.1 percent. It never broke into positive territory and even dipped below 18 briefly.

The index is back in line with the November futures, which lost 0.35 points to close at 18.50. The December futures were down 0.20 points to 19.30.

More than 1 million SPX options traded on the day, with 635,000 puts. The VIX options traded 316,000 contracts, led by 225,000 calls. Despite that heavy action, the VVIX Index, which measures the implied volatility of the VIX options, was down 1.44 percent to 93.39.
Share this article with your friends


Related Stories

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.

VIX

Videocast: Traders buying VIX calls

January 27, 2015

Group One's Mike Palmer says one large trader is buying VIX February 26 calls, but volume is slow because of the big storm.

VIX

Volatility falls as equities end mixed

January 27, 2015

The major equity indexes finished yesterday mixed after climbing off morning lows, while the CBOE Volatility Index fell nearly 7 percent.

VIX

Videocast: Storm slows VIX trading

January 26, 2015

As action slows ahead of this week's big Northeast storm, Group One's Jamie Tyrrell says traders are looking farther out by buying VIX June 18 calls.

Invest Like a Monster - Las Vegas: March 13-14

Premium Services

Free 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 »