OptionsHouse

Options Trading News

May 15, 2013  Wed 1:16 AM CT

VIX: SEE CHART GET CHAIN FIND STRATEGIES
Equities showed more strength yesterday with new record highs, while the CBOE Volatility Index climbed as well.

The S&P 500 gained 16.57 points, or 1 percent, to close the day at 1650.34. The SPX finished just off its session high, which came just before the bell. It climbed through the morning, took a breather into the afternoon, and then pushed to fresh highs in the last hour--finally breaking that 1650 level. It has support at 1597.

The Nasdaq 100 added 13.95 points, or 0.47 percent, to end the day at 2996.05. That is the index's highest close since November 2000. The index reached its session high just above 3005 at at midday. It has support at 2883.

The Russell 2000 gained more than 12 points, or 1.25 percent, to finish at 985.96. That was the day's high and a new all-time high. The small-cap index is up more than 15 percent from its November lows. It has support at 944.

The VIX was up 0.22 points, or 1.75 percent, to 12.77. The volatility index had traded as high as 13.21 in the first couple of hours yesterday and then gave up some of that ground.

The curious action in the VIX, which usually moves inversely to the S&P 500, could have been caused by unusually heavy call buying in the SPX options. I also believe that it might have something to do with the complicated VIX calculation, which dropped the May SPX options and is now based on the June and July series.

The VIX futures were lower at the end of the day. The May futures have a week left of trading and were down 0.10 points to 13.50. The June futures were down 0.50 points to 15.05. This had the iPath S&P 500 VIX Short-Term Futures Note (VXX) down 0.98 percent to $18.20, just off of last week's all-time closing low.
Share this article with your friends


Related Stories

VIX

Videocast: VIX calls target 2008 level

February 11, 2016

Group One's Mike Palmer says at least one trader is buying VIX May 70 calls, looking for levels not seen since September 2008.

VIX

Video: Huge VIX call spread in focus

February 10, 2016

Group One's Jamie Tyrrell says traders are taking both sides of the VIX March 30/50 call spread, with heavy volume at yesterday's close taking it to 500,000.

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.

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 »