Options Trading News

March 4, 2013  Mon 12:45 AM CT

All three equity indexes climbed from early losses to finish higher. That sent the CBOE Volatility Index lower, but all of the VIX futures gained.

The S&P 500 ended the week at 1518.20, up 3.52 points on the day. It had been down at the open, briefly breaking below 1502 before rallying into positive territory. The SPX settled in through the afternoon in a low-volatility range around that 1518 level and finished back above its 20-day moving average. Resistance is at 1530 and support at 1485.

The Nasdaq 100 was up 9.17 points to close at 2747.75. The NDX broke below 2714 just after the open, and it too settled into a tight range for the afternoon. Resistance is at 2782 and support at 2690.

The Russell 2000 followed the same pattern, finishing the week at 914.73, up 3.62 points. The small-cap index barely closed above its 10-day moving average. It has resistance at 932 and support at 894.

The VIX was down 0.15 points to close the week at 15.35. This could be chalked up to the gains in the S&P 500 but was more likely caused by the fact that it was a Friday, when the weekend time decay gets priced into the SPX options.

The VIX futures, in contrast, were all higher. The March futures were up 0.30 points to 16.45, while the April futures gained 0.20 points to close at 16.90. The May futures gained 0.25 points to 17.30.

The VIX options traded just shy of 500,000 contracts, with calls outpacing puts by almost 2 to 1. The VVIX Index, which measures the implied volatility of the those options, was up 1.5 percent to 87.83.
Share this article with your friends

Related Stories


Videocast: Target 35 level in VIX

October 2, 2015

Group One's Jamie Tyrrell says traders are targeting the 35 level for the volatility index in October, November, and December contracts.


Video: Traders sell VIX premium

October 1, 2015

Although the spot VIX remains elevated, Group One's Jamie Tyrrell says implied volatility is "pretty normal" for October.


Video: Sharp moves seen in VIX

September 30, 2015

Group One's Jamie Tyrrell says an October 23.50 straddle traded for about $5, indicating that a big move is expected in volatility levels.


Video: Big trades sell calls in VIX

September 29, 2015

Group One's Jamie Tyrrell says two big trades today are selling October 22 calls and closing a December 20/35 call spread.


Video: Limited upside seen in VIX

September 28, 2015

Even as volatility jumps with today's market selloff, Group One's Jamie Tyrrell says traders are selling VIX calls in strikes above the 30 level.

Invest Like a Monster - San Antonio: October 9-10

Premium Services

Archived Webinar

Education & Strategy

Options Academy: More on the Covered Call Strategy

Last week, we talked about the Covered Call and the misconceptions that surround it. We spoke about how an investor must realize that the Covered Call is actually a premium collection strategy and not so much a directional one. If an investor can grasp this idea, the investor stands to do a heck of a lot better in the strategy than they currently do.

View more education articles »