Learn the trade here. Make it on tradeMONSTER

Options Trading News

January 22, 2013  Tue 12:14 AM CT

VIX: SEE CHART GET CHAIN FIND STRATEGIES
The major equity indexes had another good week with two of the three finishing Friday at highs, driving the CBOE Volatility Index lower in the process.

The S&P 500 rose 5.04 points to reach another five-year high. It slipped in the morning but climbed all afternoon to finish at its session peak of 1485.98, its highest close since the end of 2007. Resistance is now 1523 and support 1457.

The Nasdaq 100 lost ground on Friday, down just under 4 points to close at 2743.24. Resistance is now at 2785, and first support is 2704.

The Russell 2000 was up 2.44 points to close at 892.8, another all-time high. It has a first level of support at 872.

The VIX collapsed on Friday, giving up 1.11 points, or 8.2 percent. It finished the week at 12.46, its lowest close since April 2007. That was when the SPX was trading around 1530 and before it climbed to the high of 1576.

The VIX futures fell as well, with the February contracts down 1.10 points to 14.60. The March futures lost 0.75 points to close at 16.25.

This drove the iPath S&P 500 VIX Short-Term Futures ETN (VXX) to yet another all-time low of 23.88, down 6.44 percent on the day. The VXX is down roughly 30 percent from the open of trade on Dec. 31.

More than 799,000 VIX options changed hands, led by 579,000 calls. Despite the action, the VVIX Index, which measures the implied volatility of the VIX options, fell 6.8 percent to a new low of 73.43.

That compares to unusual data in the historical volatility of the VIX. The 20-day reading remains elevated at 133 percent, just off 52-week highs, but the 10-day reading was at a new 52-week low below 30 percent earlier in the week.
Share this article with your friends


Related Stories

VIX

Videocast: Volatility quieting down

October 20, 2014

As stocks drift higher after last week's selloff, Group One's Jamie Tyrrell says the big trades today are selling October VIX calls.

VIX

VIX falls as equities close mixed

October 20, 2014

Equity indexes were mixed on Friday to finish a volatile week, while the CBOE Volatility Index dropped nearly 13 percent.

VIX

Videocast: Volatility down big today

October 17, 2014

Group One's Jamie Tyrrell says the volatility index is back down near the 20 level in today's rally, with near-term futures getting "crushed."

VIX

Videocast: November VIX calls sold

October 16, 2014

Group One's Jamie Tyrrell says traders are holding onto protection for the next few days but are selling the November VIX calls, apparently believing that volatility levels are too elevated.

VIX

VIX finishes wild session above 26

October 16, 2014

Equity indexes rebounded off the midday lows to finish mixed yesterday, ending a wild ride that sent the CBOE Volatility Index to its highest level in almost three years.

TRADING WEEKLY OPTIONS

The fastest money in the market
View full report »

Premium Services

Free Webinars

Make Money in a Volatile Market

Education & Strategy

Analyzing a bipolar market

Economics hinges on the tenet that people, including investors and traders, act rationally and in their own best interests. But...

View more education articles »
optionMONSTER stockMONSTER tradeMONSTER