OptionsHouse

Options Trading News

November 20, 2012  Tue 12:45 AM CT

VIX: SEE CHART GET CHAIN FIND STRATEGIES
The primary U.S. equity indexes gained 2 percent or more yesterday, driving the CBOE Volatility Index to the lowest in a month.
 
The S&P 500 was up 27.01 points, or 1.99 percent, to close at its session high of 1386.89. Support is now 1348, and resistance is just below 1400.

The Nasdaq 100 was up 61.67 points, or 2.43 percent, to finish at 2595.76. That was the best percentage gain of the three major indexes, as the NDX saw a steeper and steadier climb than its peers throughout the day. It has support at 2494 and resistance at 2623.

The Russell 2000 was up just shy of 17 points to close at 793.06. It has support at 764 and resistance at 805.

The gains in all the stock indexes were impressive but take them back only to where they were at the beginning of last week. All three are still below their 20-day moving averages.

The equity rally drove the VIX down 1.17 points, or 7.13 percent, to 15.24. That is its lowest close since Oct. 18, when the volatility index finished at 15.03 and the SPX was trading around 1460, more than 70 points higher than we are now.

The VIX futures were also lower. The November futures--which have only one more day to trade--were down 1.55 points, or 9.25 percent, to 15.20. December futures lost 1.60 points to 16.60. Given that Friday saw 178,000 VIX futures trade, I believe it was a record week for those futures.

The VIX options had a big day yesterday with volume of more than 1.1 million contracts, led by  701,000 calls. The SPX options traded 642,000 times, with just slightly more puts than calls.

Despite all the action in the VIX options, the VVIX Index, which measures the implied volatility of the VIX options, was down 2 percent to 88.43. On the whole it appears there is very little actual fear in the markets about the "fiscal cliff," or at least no one is acting on it.
Share this article with your friends


Related Stories

VIX

Videocast: Selling high VIX strikes

January 30, 2015

Group One's Jamie Tyrrell says today's big volatility trades are selling this pop in the VIX, unloading the February 29 and 30 calls.

VIX

VIX drops as equities bounce back

January 30, 2015

The major equity indexes rebounded yesterday after the steep selloff in the previous session, and the CBOE Volatility Index dropped nearly 19 percent.

VIX

Videocast: VIX action 'wishy washy'

January 29, 2015

After the VIX soared late yesterday, Group One's Jamie Tyrrell says today's volatility trading is "wishy washy" as the pits try to decide which way the market is heading.

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.

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

Premium Services

Archived 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 »