OptionsHouse

Options Trading News

September 4, 2013  Wed 12:45 AM CT

VIX: SEE CHART GET CHAIN FIND STRATEGIES
Major equity indexes gained ground yesterday but finished well off their best levels of the morning.

The S&P 500 rose 6.80 points to 1639.77. It had jumped above 1650 at the open before giving up essentially all of those gains by early afternoon. The run with an hour left to trade took the index off the day's lows. It has resistance at 1670 and support at 1600.

The Nasdaq 100 followed a similar pattern, running above 3110 before ending the day up 17.95 points to 3091.76. It has resistance at 3149 and support at 3030.

The Russell 2000 climbed 5.37 points to cloes at 1016.26. Like the SPX, the small-cap index remains below its 10- and 20-day moving averages. It has resistance at 1055 and support at 1000.

The CBOE Volatility Index was down 0.40 points, or 2.35 percent, to 16.61. The VIX had climbed back above 17 just after noon and stayed there until the final hour of trade. The implied volatility index remains higher than the SPX's actual volatility, which has a 20-day reading below 10 percent.

The VIX futures were down more, in percentage terms. The September futures lost 0.65 points to finish at 16.85. There is very little premium in that contract above the spot VIX compared to what we have seen of late. The October futures were down 0.50 points to 17.65. That had the iPath S&P 500 VIX Short-Term Futures Note (VXX) down 3.7 percent to $16.41.
Share this article with your friends


Related Stories

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.

VIX

Videocast: Huge VIX call spread sold

February 4, 2016

As the market continues to churn, Group One's Jamie Tyrrell says today's big trade is the sale of a VIX March 30/40 call spread 115,000 times.

VIX

Videocast: Big March call spread in VIX

February 3, 2016

As the market pulled back this morning, Group One's Jamie Tyrrell says a major player bought a March 30/40 call spread 150,000 times.

OptionsHouse

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 »