Selloff sends VIX back above 13
Chris McKhann | firstname.lastname@example.org
Equity indexes saw their steepest decline of the New Year yesterday, driving the CBOE Volatility Index back above the 13 level.
The S&P 500 fell 23.17 points to 1819.20, its lowest close since Dec. 20. It was briefly in positive territory in the first hour of trade but then steadily lost ground from there, dipping as low as 1815 though bouncing slightly into the close. Resistance remains at its high of 1849, while there is some support at 1810 and then 1780.
The Nasdaq 100 dropped 52.29 points to 3512.80. It followed the same pattern as the SPX and bounced right off 3500. Resistance is at 3592 and support at 3455.
The Russell 2000 was down 16.47 points to 1148.06. The small-cap index has resistance at 1168 and support at 1120.
The VIX gained 1.14 points, or 9.39 percent, to 13.28 after dipping to 11.82 in the morning. The VXST, the 9-day volatility index, was up 31 percent to 13.09.
The VIX futures followed higher. The January contracts, which have just over a week to trade, closed at 13.80. The February futures finished at 14.60. That had the iPath S&P 500 VIX Short-Term Futures Note (VXX) up 3.6 percent to close at $42.31.
Video: Huge VIX call spread in focus
February 10, 2016
Group One's Jamie Tyrrell says traders are taking both sides of the VIX March 30/50 call spread, with heavy volume at yesterday's close taking it to 500,000.
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.
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.
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.
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.