OptionsHouse

Options Trading News

October 9, 2013  Wed 2:44 AM CT

VIX: SEE CHART GET CHAIN FIND STRATEGIES
Equity indexes sold off sharply yesterday, driving the CBOE Volatility Index to its highest close of the year.

The S&P 500 was down 20.67 points, or 1.23 percent, to close at 1655.45. It finished at the low of the day for its lowest close since Sept. 6. It has resistance at 1729 and support at 1630.

The Nasdaq 100 plunged 61.83 points, or just shy of 2 percent, to close at 3153.87. It has resistance at 3256 and support at 3060.

The Russell 2000 lost 18.53 points, or 1.74 percent, to finish at 1047.26. It has resistance at 1087 and support at 1010.

The VIX was up 0.93 points, or 4.79 percent, to 20.34--its highest since the end of 2012. The last time the VIX closed higher, the SPX was down at 1400. The volatility index was as high as 21.01 with less than 2 hours to trade. It is now substantially higher than actual volatility, which is around 10 percent.

The VIX futures followed, but remain lower than the spot index. The October futures were up 0.90 points to 19.40, which brings it above the next three futures in a rare occurrence. The November futures were up 0.75 points to 19.10. That had the iPath S&P 500 VIX Short-Term Futures Note (VXX) up 4.63 percent to 16.96.

The VIX options set a volume record with more than 1.7 million traded, more than 1.1 million of which were calls. the VVIX Index, which measures the implied volatility of the VIX options, was up 3.47 percent to 106.55. It is up 50 percent in the last two weeks.

Share this article with your friends


Related Stories

VIX

Videocast: Traders see floor in VIX

March 2, 2015

Group One's Jamie Tyrrell says traders are selling March VIX puts, apparently believing that further downside potential in the volatility index is limited.

VIX

Videocast: VIX 'cash spread' hedge

February 27, 2015

Group One's Mike Palmer explains the strategy behind a VIX "cash spread" as traders cover positions going into the weekend.

VIX

Videocast: Futures see higher VIX

February 26, 2015

Although the spot volatility index remains below 14, Group One's Dominic Savino says the March VIX futures are targeting the 16 level.

VIX

Videocast: Low short-term volatility

February 25, 2015

Although a big player is buying VIX March 23 calls, Group One's Mike Palmer says the iPath S&P 500 VIX Short-Term Futures Note (VXX) settled today near 11.

VIX

Videocast: VIX falls as Yellen talks

February 24, 2015

Group One's Mike Palmer says traders are betting on lower volatility amid speculation that the Federal Reserve will not hike interest rates before the end of the year.

OptionsHouse

Premium Services

Webinar Recording

Turbo Charge Your Trading Profits

Education & Strategy

The Strike-Based Greeks

The other Greeks (Gamma, Vega, and Theta) are calculated by using month and strike data, and not by individual option. These are called strike-based Greeks. Gamma, Theta, and Vega are all strike-based Greeks

View more education articles »