Options Trading News

February 6, 2013  Wed 12:45 AM CT

Equity indexes rebounded strongly yesterday but were unable to regain all of Monday's losses.

The S&P 500 was up 15.58 points to close at 1511.29. It climbed to 1514.96 an hour before the bell, its highest intraday price since 2007, but then pulled back below Thursday's close. Resistance is now around that 1515 level, while support is at 1472.

The Nasdaq 100 had the best percentage gain of the three major indexes, ending the day up 1.45 percent. That was a gain of 39.31 points to 2754.99, but it was still below Thursday's highs. Resistance remains at 2770 and support at 2660.

The Russell 2000 rose 0.99 percent, or 8.94 points, to 908.22 but also did not regain Thursday's highs. Resistance will likely be at 913, and support is at 880.

The CBOE Volatility Index was down 0.95 points, or 6.48 percent, to 13.72. It lost ground all day but bounced in the final hour. The VIX February futures lost 0.90 points to close at 14.40, while the March futures were down 0.30 points to 15.60.

The VIX options volume was relatively light at 335,000, led by 255,000 calls. The VVIX Index, which measures the implied volatility of the VIX options, was down 3.5 percent to 75.07, back near its lows.
Share this article with your friends

Related Stories


Video: VIX October 22 calls bought

October 8, 2015

The VIX Weeklies began trading today, but Group One's Jamie Tyrrell says the big trade is in standard options with a purchase of 45,000 VIX October 22 calls.


Videocast: VIX call buyers return

October 7, 2015

Group One's Jamie Tyrrell says traders were selling VIX calls early in the day but reversed course as the market rally fizzled.


Videocast: Volatility levels decline

October 6, 2015

Group One's Jamie Tyrrell says volatility trading today is implying that the type of VIX action from August and early September will not repeat itself.


Video: Traders see elevated VIX

October 5, 2015

Even with the volatility index falling below 20 today, Group One's Jamie Tyrrell says traders are buying calls and selling puts in the VIX.


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.


Premium Services

Archived Webinar

Education & Strategy

The covered call and unhedged risk

I have written a few things on the Covered Call Strategy over the last two weeks. Please understand that those two previous articles plus this one do not constitute a proper, fully in-depth lesson on the Covered Call Strategy like we have in our classes at Option Monster Education. I have picked out a few topics that I believe were worth noting and today I am going to add the final one.

View more education articles »