Learn the trade here. Make it on tradeMONSTER

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

VIX at 12 as SPX, NDX hit highs

November 28, 2014

Major equity indexes finished Wednesday's session at new highs, driving the CBOE Volatility Index to the 12 level.

VIX

VIX at lowest close in two months

November 26, 2014

The major equity indexes were mixed but little-changed yesterday, while the CBOE Volatility Index fell to its lowest level in two months.

VIX

Videocast: Caution in the VIX pits?

November 25, 2014

Group One's Jamie Tyrrell dissects large VIX call buying that has continued all week, saying that today's price action indicates that traders may be getting more cautious on the market.

VIX

VIX lower as stocks keep rallying

November 25, 2014

The major equity indexes added to their gains yesterday, sending the S&P 500 and Nasdaq 100 to more new highs while pushing the CBOE Volatility Index lower.

VIX

Videocast: VIX call buyer returns

November 24, 2014

Group One's Jamie Tyrrell says a large trader continues to purchase VIX December 19 and 23 calls, though others are buying put spreads.

TRADING WEEKLY OPTIONS

The fastest money in the market
View full report »

Premium Services

Free Webinar Series

Using Options for Income

Education & Strategy

Importance of learning the basics

Personally, I could never understand how so many option instructors start teaching strategies before explaining what an option is. I...

View more education articles »
optionMONSTER stockMONSTER tradeMONSTER